Cliff's is playing a brilliant game ( I hate writting it grrr!). They are playing SPK against KWG and admit they may only take one and deal with the other in a JV in what is in their opinion the lesser of the Chromite deposit they are involved with. In other words, once they wrap up control thru buying one out, they will leave they other to wither away. Not a comfortable position if you are a shareholder of the one that does not make a deal first.
Competing offers...LOL, they know that Noront is probably itching to get back at them and make an offer here, so they bomb us to hell. They remember FWR very well and how they had to pay much more than they wanted for it. They will not make that same mistake again! How much more punishment will NOT have to endure until this deal is consumated?
Will another white knight show up? Not likely IMO with Cliff's controlling so much of the Chromite up there.
The only option left, for KWG and SPK to get together. However, this is probably very unlikely and even if they managed to get it done quickly, cliff's is still left calling the shots as the combined entity will not have the financial backing to compete with the likes of Cliff's.
Buying shares in either SPK or KWG higher than 13 cents is risky IMO. A repeat of FWR is not likely but I called that one wrong so make your decisions here!
Good luck to all!
Glorieux
PS RIP my Canadiens, it was a pleasure being a fan for the last 5 weeks!!
