I suspect that at one point in the recent past, the Ont Gov realized that they had made a mistake by betting on Cliffs not withstanding their commitment to some $600 million into the private road...unfortunately, there was no way to back out of that situation without Cliffs launching a lawsuit against them, (Ont Gov)...so they did everything they could to delay things hoping that something would change (either KWG would blow up or Cliffs would) all the while avoiding any appearance of association with the KWG solution...not even mentioning the KWG name...

Meanwhile KWG did approach Cliffs for a buy-out but they would not entertain KWG's price (I don't think they would have sold to KWG at any price)...so KWG had to use the courts (appeal of the appeal) to buy some time given that Cliffs is in a very bad financial situation and going down fast (fundamentals not SP)…this further delay collaterally put added pressure on Noront because they desperately needed to get a decision out of the government (debt, interest, impatient partners etc…)

IMHO Noront did the only thing they could and that which ultimately will move things forward. Even if they did it to advance their own project, they have consequently opened the way for the Govs to move in another direction other than the NS private road without a lawsuit from Cliffs, as well as cleared the way for outside money to be reconsidered by international deep pockets.

IMO We will see a consortium, partnership and maybe a take-over, but it will be executed by bigger players who are either going to be involved in the infrastructure, in equity, in off-take agreements or in royalty deals in exchange for some serious capital infusion. Iit will probably be a complicated combination of the above-mentioned and it will be vertically integrated from the mine (ore) to the finished product (stainless steel). I estimate approx. 5 to 10 interested parties….5+ phases of vertical integration and many many billing hours for the legal teams.

At PDAC, I had a very good 30 minute talk with Frank in the KWG hospitality suite, and I came away from that conversation, feeling confident that Frank had postured the company in a very strong bargaining position relative to Cliff. He just had to make sure we survived by remaining solvent. I actually think that when Frank launched the appeal, the Ont Gov knew that the writing was on the wall (Cliffs woul;d not last another round) and at that point they may have encouraged Cliffs to settle this quickly (behind closed doors of course).

I also watched Frank’s latest interview and I still think that he is playing his cards close to his chest, but now that the flood gates are open, the Govs have no more space to manoeuvre in their attempts to avoid embarrassment. These two “juniors” are going to shame them into action by the mere fact that if they succeed in financing their projects including the slurry pipe, they in essence will be land-locking the other deposits in the ROF; that will not look good for both Govs who will be blamed for not installing the infrastructure that would support all the deposits up there i.e. Railroad. Will the Govs allow that to happen or will they step in with decisive and strategic moves.

I am glad that Frank has opted for the slurry, because that puts KWG’s goals and profitability at the top of the priority list (very attractive for international deep pockets) as opposed to the costly option (RR) that would accommodate all the players in the ROF… Frank has been gracious enough and has given the Govs every opportunity to get in and build the infrastructure for all, but it’s been nothing but double-talk, cover-ups and BS. It’s time to team up with NOT and get it done…even if the Govs end up with egg on their collective mugs.

Just my Humble Opinion…best of luck to all KWG and NOT longs

Le Penseur