Globe/CP say Cliffs offering to buy KWG and Spider
Ticker Symbol: C:KWG C:SPQ
Globe/CP say Cliffs offering to buy KWG and Spider
KWG Resources Inc (2) (C:KWG)
Shares Issued 577,741,471
Last Close 5/21/2010 $0.08
Bullish for NOT FNC PRB?
Wednesday May 26 2010 - In the News
Also Spider Resources Inc (C:SPQ) In the News
The Globe and Mail reports in its Wednesday, May 26, edition that Cliffs Natural Resources plans to make takeover offers to KWG Resources and Spider Resources, in an effort to become majority holder of the Big Daddy chromite project in Northern Ontario. A Canadian Press dispatch to The Globe reports that Cliffs is based in Ohio. Cliffs says it is planning to offer 13 Canadian cents a share in cash for each company, which values KWG at $100-million and Spider at $86-million. KWG and Spider shares were under a trading halt Tuesday but each stock last traded at 8 cents on the TSX Venture Exchange. Cliffs is already the largest shareholder of KWG, with about 19.4 per cent of its common stock. The two largest shareholders of Spider, as of mid-April, were Joe Dwek Management Consultants at 13.4 per cent and Ned Goodman Investment Counsel at 4.70 per cent. KWG and Spider each own 26.5 per cent of Big Daddy. Cliffs president William Boor says, "We only need to acquire either KWG or Spider in order to satisfy our strategic objectives with respect to the Big Daddy deposit." Cliffs already has a 47 per cent interest in the chromite project, which is in McFaulds Lake, part of the Kenora district.
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