Cliffs Natural Resources has increased its ownership of Spider Resources to 81 per cent and has extended its offer to acquire all of Spider's shares.
The Ohio-based iron ore giant announced July 19 it has taken up 195.5 million common shares of Spider that have been tendered under Cliffs' offer to purchase all of the common shares. Spider has 659,262,891 common shares outstanding.
Cliffs has extended its offer to July 26 in order to permit additional shares to be tendered. The offer price is $0.19 per share.
With their recent acquisition of Spider, Cliffs has control of 73.5 per cent of the Big Daddy chromite deposit in the James Bay Lowlands. Spider will become project operator in April 2011.
“Now that Cliffs has over 80 per cent of Spider's shares, Cliffs has achieved its objectives of gaining control over the Big Daddy chromite deposit,” said William Boor, the president of Cliffs' ferroalloys business unit, in a release. “Even so, we have decided to give the remaining Spider shareholders a further opportunity to tender our offer in July, so that they don't have to wait for several months to receive the same price under a compulsory acquisition or squeeze-out transaction.”
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