Cliffs Natural Resources is upping its bid to take over Spider Resources as part of the major power play to gain control of a massive chromite deposit in the James Bay Lowlands.
The Ohio-based miner announced it proposes to increase its cash take-over bid for Toronto-based Spider to $109 million from $105.9 million.
They are seeking to halt Spider's proposed merger with KWG Resources, Spider's partner in the Ring of Fire exploration camp.
"We have said all along that our objective is to obtain control of the Big Daddy chromite deposit in the McFaulds Lake area of Northern Ontario," said William Boor, president of Cliffs' Ferroalloys business unit in a June 14 statement.
"We believe we can achieve that objective with our proposal to increase our offer for Spider."
The new offer increases the bid to $0.165 per common share from $0.13.
KWG Resources and Spider Resources have announced the signing of a “definitive business combination agreement,” which will pave the way for a merger.
It is subject to shareholder approval. If successful, shareholders of Spider and KWG will each own 50 per cent of a new company.
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