Spider Resources

I asked KWG for an interpretation based on the shareholder option agreement dated March 16, 2009. Here is the reply from Bruce Hodgman, indicating that I was correct:

"The issue of treasury shares by KWG in payment for the acquisition of property other than cash is one of the transactions that is excluded from those events that trigger the Cliffs preemptive right to maintain its 19.9%. The proposed merger structure would have KWG issue treasury shares to Spider’s shareholders when Spider and KWG’s subsidiary (created for the purpose) amalgamate. This is how a Quebec company (which cannot change its jurisdiction) can effectively merge with a Canada company (like Spider), by putting its assets into a wholly-owned subsidiary Canada company."

Lar