KWG urges shareholders to wait re Cliffs offer
Ticker Symbol: C:KWG C:SPQ
KWG urges shareholders to wait re Cliffs offer
KWG Resources Inc (2) (C:KWG)
Shares Issued 577,741,471
Last Close 5/27/2010 $0.135
Friday May 28 2010 - News Release
Also Spider Resources Inc (C:SPQ) News Release
Mr. Bruce Hodgman of KWG reports
KWG RESOURCES INC. RESPONDS TO COMMENTS BY CLIFFS NATURAL RESOURCES INC.
KWG Resources Inc. has noted the press release issued by Cliffs Natural Resources Inc. with respect to the announcement of the proposed merger between KWG and Spider Resources Inc.
The proposed merger between Spider and KWG is a logical next step in the continued exploration and development of their jointly held mineral projects in Northern Ontario and represents the culmination of a partnership that has endured for over 18 years. KWG believes that this combination creates value for both sets of shareholders by securing control of their respective assets, and in particular a majority interest in the Big Daddy Deposit. The merger as announced has been structured to ensure each shareholder group will hold an equivalent interest in the assets to what they hold today, but with additional scale, market liquidity, and ultimate control over the assets. The combined company will then have the flexibility to develop the Big Daddy deposit, as well as its other assets, to maximize value to its combined shareholder base. KWG will be communicating additional details about the merger to its shareholders in the coming weeks.
As previously disclosed, the Board of Directors of KWG has appointed a Special Committee of independent directors to evaluate any proposal made by Cliffs. Until a formal offer has been received, which would include conditions to the bid and timing, it would be inappropriate for KWG to comment. The board, and its advisors, will give all due consideration to the offer if and when formally made, and will respond at that time. In the meantime, KWG urges its shareholders not to take any action with respect to the announced proposal by Cliffs.
� 2010 Canjex Publishing Ltd.
