ONTARIO - Having a superior offer from Cliffs Natural Resources of Cleveland, Spider Resources of Toronto has terminated the combination agreement with KWG Resources of Montreal. Spider will pay KWG a break-fee of $2.3 million.
Cliffs' offer of $0.19 per Spider share has gained it control of the Big Daddy chromite deposit in the Ring of Fire. Cliffs final offered works out to $125 million.
Cliffs gained its original interest in the Big Daddy deposit when it took over Freewest Resources in January for $240 million. The company also acquired the Black Thor and Black Label deposits from Freewest.
Cliffs maintains a website at www.CliffsNaturalResources.com.