Posted in | Diamond | Mining Business

Spider Resources Receives Revised Offer

Toronto based mining company Spider Resources Inc. received a revised proposal from Cliffs Natural Resources Inc. to obtain Spider Resources' support in an acquisition of the company by Cliffs Natural Resources. This increased offer price for the takeover bid came after KWG Resources Inc.'s revised its offer in respect to the proposed amalgamation.

Cliffs Natural Resources Inc. also has a lock up agreement with MineralFields Group, a Toronto based company which owns 13.8% of shares in Spider Resources Inc. The revised offer raises the original 13 cent all cash offer to 19 cents.

However the revised offer is contingent on Spider Resources terminating its agreement with KWG. The proposed merger with KWG and Spider on July 8, 2010 will have to be squashed to avail of the $2-3 million break fee.

The shareholders of Spider Resources have an important decision to make as the offer by Cliffs is open only till midnight on July 6, 2010.

Spider Resources Inc. is the "Spark that set off the Ring of Fire". Spider, the Pioneer Explorer in the James Bay Region of Northern Ontario since 1993 was responsible for the discovery of eight kimberlites (1994-95), ten VMS occurrences, including two VMS deposits (2002-2006) and one chromite deposit (2006). Regional geophysical surveys and other exploration efforts as initially conducted by Spider formed the exploration data-set that led to the first discovery of chromite in the area in February 2006, in a peridotite intrusion, and about a year later lead to the eventual discovery of additional chromite deposits and related magmatic massive sulphide nickel deposits by others.

Spider Resources Inc. is a Tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are currently 541,737,009 shares issued in Spider. Spider has approximately $8.5 million in working capital at present of which $2 million is restricted for flow through expenditures.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, content production, design, animation, database and networking, software, and editing. Joel has been with AZoNetwork since its inception in 2000.

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