The second portion of this Report has added substantial weight to my "scenario"...It is so important that I copied part of said Report with F. Smeenk of KWG,,,,It confirms clearly that the first choice would be Big Daddy, for the
numerous reasons given, as I had posted here before..".It's in my interest to make it Big Daddy"
Before I do that, this may be some compelling evidence, for what I wished for....When I had that very long discussion with Mr. Novak at the PDAC, a litte something slipped out , but I couldn't make sense of it at the time...."Mr. Novak said that he was waiting for a very important call from KWG to see if it's a "go"...This was in response to my question to him as to what comes next, that I should keep an eye on....
Now the importance of this report thank you again for posting it, can be helpfull in a number of ways....The first is, that it was clearly stated by Frank, that SPQ/KWG now HAVE CONTROLLING 53% of this 5 claims JV. project, and that Cliffs only holds a 47% INT...and so therefore the 53% of SPQ/KWG in control...this is wonderful confirmation.
As I posted numerous times I did not believe that Cliffs would allow any more drilling on these JV claims, especially on the Nickel, PGES and VMS deposits, for obvious reasons, not to spike their prices UP....It starting to appear to me that these 2 SPQ/KWg now have other plans of their own...
According to this release, they are both in the process of arranging a project financing package, apparently to drill for these other aforementioned deposits. Frank goes on to state that IF approved it will make a compelling case for BIG Daddy, but he also states that the source of the financing may determine it....
It is not clear at all whether this source of finance is Cliffs,...However he does state that the financial metrics of Cliffs oqnership of KWG is NOT effected, by this Huge Capital costs, so he continues, we are finding a Sympahetic hearing in Cleveland...WOW...I know Cleveland is where Cliffs is , but it seems to me from that wording, that they are NOT involved...So then this tells me that a new Partner may be coming on board, and that these 5 JV claims may indeed be drilled further for the Ni, Pges and VMS deposits after all....Let's all hope this is what in fact happens....
IMCO
JD*
http://www.sudburyminingsolutions.ca/articles/News/03-10-Chromite-mine-operator-still-to-be-determined.asp"It's still not clear which part of the chrome intrusion will bedeveloped first.
It's in my interest to make it Big Daddy, but it couldbe Black Thor," said Frank Smeenk, president and CEO of KWG Resources."Big Daddy has the width, the grade and the consistency and seems to bethe more concentrated portion of the intrusion...but there's no dataindicating a compelling case in favour of Big Daddy or Black Thor, so Ithink the source of financing may determine it.
"If KWG is able to put together a project financing package,
then thatwould add to the attractiveness of Big Daddy being first."
KWG and Spider earned a 53 per cent interest in the Big Daddy depositas the result of an option agreement with Freewest, leaving Cliffs witha 47 per cent stake in Big Daddy to add to its 19.9 per cent stake, orclose to it, in KWG itself. "The attractiveness of a project financingvehicle using tax incentives available in Canada and having a partnerlike KWG is that Cliffs' financial metrics aren't affected by this hugecapital cost, so we're finding a sympathetic hearing in Cleveland,"said Smeenk.
