Why it has been quiet.My best guess (perhaps hope) as to why it has been quiet for such a long time is this.
Cliffs has been discussing with KWG what price it will take for a friendly takeover. Some of the reasons for this theory are:
1/ Cliffs knows they will have to buy KWG eventually so sooner is better than later.
2/ They now know that KWG can dirty up the process such as their intention to split off the railway rights and the NSR. Cliffs surely understands the importance of the railway.
3/ Cliffs will always be considered an insider of KWG (> 10%) so any takeover will require a valuation. That valuation can only increase as drilling is done and the inferred resources are moved to indicated.
4/ KWG is the operator until April 2011 so they will influence what is done (deeper drilling, scoping studies and preliminary feasability studies). This will increase the value.
5/ As part of a friendly deal, KWG will agree not to dissent their SPQ shares. This will save Cliffs time and hassle to complete the Spider takeover and probably save them a few bucks when buying out the remaining SPQ shares. After all, if KWG doesn't foot the legal bill to dissent, who will?
Trix