Cliffs Natural Resources Inc. Reviews Options Regarding Proposed Takeover of KWG

Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Palominer

Rank: Treasurer [?]

Points: 587 [?]

Votes: 66 Score: 3.3 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Cliffs Natural Resources Inc. Reviews Options Regarding Proposed Takeover of KWG

posted on Jun 07, 2010 08:18AM

http://www.streetinsider.com/Press+Releases/Cliffs+Natural+Resources+Inc.+Reviews+Options+Regarding+Proposed+Takeover+of+KWG+Resources/5705552.html

CLEVELAND--(BUSINESS WIRE)-- Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced that it continues to review its options with respect to making a formal offer for the common shares of KWG Resources Inc. ("KWG") (TSXV: KWG) and may not make such an offer in light of KWG’s disclosure on May 25, 2010, only one day after Cliffs’ announced intention to bid for KWG, that it has entered into a binding letter agreement to merge with Spider Resources Inc. (“Spider”) (TSXV: SPQ). Cliffs added that it will provide further information once it has made its decision on this matter.

As disclosed on May 24 and June 3, 2010, Cliffs can achieve its strategic objective of gaining control of the “Big Daddy” chromite project located in the McFaulds Lake area of Northern Ontario by acquiring either Spider or KWG. Cliffs currently owns a 47% interest in the project while Spider and KWG each own 26.5% and have the option to earn-in up to 30% each.

Cliffs remains firmly committed to its offer for Spider, which commenced on May 31, 2010 and expires on July 6, 2010 unless extended or withdrawn. Cliffs is offering a price of Cdn.$0.13 in cash per Common Share, which represents a premium of 62.5% over the closing price of the Common Shares on the TSX-V on May 21, 2010, the last trading day prior to disclosure of Cliffs’ proposal to acquire Spider.

For more information about the offer for Common Shares, shareholders of Spider are invited to read Cliffs’ offer to purchase and accompanying circular dated May 31, 2010 which are available at www.sedar.com. Spider shareholders, banks and brokers who have questions or requests for assistance regarding the Offer should contact Georgeson, Cliffs’ information agent, toll free at 1-866-656-4120. Georgeson can also be contacted via email at [email protected].

To be added to Cliffs Natural Resources’ e-mail distribution list, please click on the link below: