… hey Cyl, I was just perusing thru some recent posts, and I came across one where you stated Cliffs holds a majority control percentage in the Big Daddy property… copied below…
As I have already pointed out, Cliffs already has 50.5% control of the Big Daddy deposit through their takeover of FWR and 19.9% interest in KWG. Cliff's control of the property means that it will not be forced to mine there if there is a competing company. This means that a bidding war over that property will never happen, since there is no profit in having 49.5% interest in Big Daddy.
…am I missing something Cyl, because according to the updated jv agreement taken from Spq’s annual report, Cliffs only has a 47% interest in the Big Daddy deposit to date, and this is on schedule to be reduced even further if Kwg and Spq spend req’d. funds again this year per the jv agreement…Kwg and Spq presently jointly hold a 53% majority interest in Bid Daddy, I know Cliffs hold a 19.9% interest in Kwg, but this share ownership cannot be used as a measuring stick as to there total ownership of Big Daddy, it is merely a separate investment in Kwg… and here's a what if, and only if, let’s say there was to be an offer from two competing companies, one being Cliffs, to takeover total control of Big Daddy.. the offers come in, bottom line is that the other company, not Cliffs, on final bids ends up being the best offer by a landslide… Kwg sides with Spq to accept the best bid, Cliffs is now minority shareholder, is this a possible scenario?… just throwing my hat into the ring Cyl, I too want all of us to enjoy life and retirement, as in sooooon… lol… all the best folks,kelsee
*if my figures are wrong here Cyl I'll give my face a slap and go hide under the nearest rock...
…this is taken from Spq’s recent annual report…
On September 14, 2009, Spider announced that it has amended and restated the December 2005 Option
Agreement with respect to Freewest Resources Canada Inc.’s (“Freewest”) McFauld’s property located in Ontario.
Each of Spider and KWG Resources Inc. (“KWG”) has earned a 25% interest in the Big Daddy Chrome property to
date, which is comprised of four 16 unit claims, one twelve unit claim and two additional one unit claims (1,248
hectare property), pursuant to an Option Agreement first entered into with Freewest in December 2005.
During the negotiations, the delivery of a Bankable Feasibility Study by the Optionees was removed as a
requirement of the earn-in and consequently the Optionees (Spider and KWG) can only vest with 30% each once
each fulfills the conditions of the new Option agreement.
Under the Amended Option Agreement, Freewest has granted additional options to KWG and Spider under which
each can earn an additional 5% undivided interest (10% in the aggregate) in the McFauld’s joint venture property by
incurring an additional $7.5 million in expenditures ($15 million in the aggregate) by March 31, 2012. Each of KWG
and Spider can acquire: (i) an additional 1.5% interest in the McFauld’s joint venture property by incurring $2.5
million in expenditures by March 31, 2010, which KWG and Spider have completed; (ii) an additional 1.5% interest
in the property by incurring an additional $2.5 million in expenditures by March 31, 2011; and (iii) an additional 2%
interest in the property by incurring an additional $2.5 million in expenditures by March 31, 2012. If either KWG or
Spider elects not to exercise any portion of its option under the Amended Option Agreement, the other has the right
to exercise the option in its place.
