Looks like the fight is over...
Cliff will get control of the mine.....
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Cliffs wins Spider backing and KWG bows out
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NEW YORK (Reuters) - Spider Resources Inc agreed to a takeover by Cliffs Natural Resources Inc and ended a deal with KWG Resources Inc , giving up on its efforts to fend off Cliffs' unsolicited overtures.
Cliffs said Spider agreed to back its all-cash, 19 Canadian cents per share bid, implying a total equity value of C$125 million for the mining exploration company.
The move will give Cliffs majority stake of the Big Daddy project in northern Ontario, part of the so-called Ring of Fire, said to be one of the world's largest chromite deposits.
Chromite is an essential raw material for the production of chromium, which is used in the production of stainless steel.
KWG and Spider each own 26.5 percent of the Bid Daddy chromite deposit on the west side of Canada's James Bay. Cliffs, a U.S. based iron ore and coal producer, currently owns 47 percent of the deposit.
The battle started in May when Cliffs said it would launch offers for both KWG and Spider, prompting the two targets to announce they would merge under the KWG banner in a complicated all-stock deal.
Cliffs said on Friday Spider was informed by KWG that it will not submit an offer to match its C$0.19 per share bid for Spider. Spider paid KWG a termination fee of C$2.3 million and agreed to support Cliffs bid.
(Reporting by Paritosh Bansal, editing by Bernard Orr)
