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KWG Resources Inc C.CACR

Alternate Symbol(s):  KWGBF | C.CACR.A

KWG Resources Inc. is a Canada-based exploration stage company. It is focused on acquisition of interests in, and the exploration, evaluation and development of deposits of minerals including chromite, base metals and strategic minerals. It is the owner of 100% of the Black Horse chromite project. It also holds other area interests, including a 100% interest in the Hornby claims, a 15% vested interest in the McFaulds copper/zinc project and a vested 30% interest in the Big Daddy chromite project. It has also acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. It also owns 100% of Canada Chrome Corporation, a business of KWG Resources Inc., (the Subsidiary), which staked mining claims between Aroland, Ontario (near Nakina) and the Ring of Fire. The Subsidiary has identified deposits of aggregate along the route and made an application for approximately 32 aggregate extraction permits.


CSE:CACR - Post by User

Bullboard Posts
Comment by Pear3on Feb 12, 2014 12:40pm
242 Views
Post# 22200576

RE:KWG is the key

RE:KWG is the keyInvestorat, my first inclination would be to agree with you but I can't ignore what could be the buyer's (Take-over) perspective. If they buy KWG first, then Clf would be in an ideal position to command a much higher price for Clf's 70% of BD...that could be very costly. (scenario #1) If they buy Clf chromite assets first, as well as their shares of KWG, then they gain a bargaining position against KWG. First because of the voting power that they would acquire and secondly, the price per share that they would have negotiated from Clf (who at the time would have been pressured by the activist) (scenario #2) On the other hand if you consider various potential buyers standing on the sidelines of scenario 1 or 2, then you have to speculate on the comparative cost of a bidding war versus scenario #2 by itself if it were to develop. And then factor in Gov approvals which could come into play given that both Fed and Prov now realize the potential returns to the treasury for generations, and might have a preference for whom they want to deal with...??? I still think that your argument is a good one...just not sure how it's going to play given the multiple interests that come into consideration. Good luck to you and all KWG longs Pear3
Bullboard Posts