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 percent interest in the project while Spider and KWG each own 26.5 percent and have the option to earn-in up to 30 percent 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committed to its offer for Spider, which commenced on May 31, 2010 and expires on July 6, 2010 unless extended or withdrawn.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 percent 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.