Cliffs Natural Resources Inc.
("Cliffs") lost its application for an
easement over a series of mining claims held by Canada Chrome
Corporation ("CCC"), a subsidiary of KWG
Resources Inc. ("KWG"). The mining
claims that were the subject of the application were staked along a
series of linear sand ridges from the Big Daddy chromite deposit in
the McFaulds Lake region of Northern Ontario, commonly referred to
as the "Ring of Fire", south to Exton, Ontario (the
"CCC Claims").
Background
In 2008, KWG discovered the Big Daddy deposit in a joint venture
with Spider Resources Inc. ("Spider").
In 2009, KWG approached Cliffs to become a shareholder of KWG for
the purpose of assisting with the development of Big Daddy. With
Cliffs' support, KWG staked the CCC Claims for the purpose of,
among other things, building a railway that would connect the Big
Daddy deposit with a distribution point in the south.
