MarlboroD

I had a similar guess. Bruce did not call me this time to solicit support, hence KWG must have been quite confident to get the 2/3 majority! So, we could now safely assume that KWG and NOT are now working together for the same goal. A few string of events that comes to mind.

1. The resolution to consolidate the share has been passed, but KWG did not specify how and when.

- How?: A wild guess would be 1 for the current 10 to reduce the OS from 870Ms to 87Ms (Cap:$16M @ 0.02/s and 870Ms). This compared to NOT with 232Ms @ $0.46/s for a Cap of 106M. At the current share prices the Cap comparison is so lobsidded, and a comparison would be meaningless.

- When?: Frank would wait for a proper valuation before talking merger or otherwise.

2. Now that NOT is a majority shareholder with ~14% of KWG, and it would appear (even though nobody, i.e. Alan and Frank) seems to say much about the behind the scene talks) that there is no bad blood between the companies. Although there has been no confirmation about NOT filing with respect to the Appeal of the Appeal, it would also appear that the whole court case may be dropped. Not too sure what would happen to the court procedings if NOT does not provide its own story (the filing), the Court would proceed anyway, with no representation from NOT? On the other hand, KWG could always withdraw the Appeal.

3. Court costs incurred during the CLF saga: It could be millions, but even if the Court decides to rule against NOT, the whole thing is a moot point if both companies can work things out themselves, as part of an out-of-court settlement, or as part of a bigger scheme...merger between the two. Then the negotiations can begin with financial instututions brought in for proper valuations of the two companies which would include the court costs and NOT 14% ownership of KWG.

4. The valuation of KWG could be very volatile since it would depend on many factors which may include: The Fed $25M for chromite studies, the funding of the transportation route (a decision to fund an RR in the NS corridor would add quite a bit of value to KWG), investments from deep-pocket partners.

If KWG share is increased to $0.20 level from a 1 for 10 consolidation then restriction on the investment from certain investment firms would be lifted allowing them to finance KWG at some reasonably price which essentially put a floor on the SP. Not sure, if deep-pockets would care much about the share consolidation and the resulting SP. For them, it's the potential future of KWG with its holdings (the deposits, the chromite conversion processes, the transporation support and subsidies from the governments, etc).

All this may happen quite quickly given that it's the Fed election year. But I would be willing to wait for a couple of years for all the ducks to line up.

Fingers crossed...and Happy Canada Day!

goldhunter