TORONTO (miningweekly.com) – NYSE-listed Cliffs Natural Resources may not make an offer for Canadian junior KWG Resources after all, but remains committed to an offer already launched for Spider Resources, the firm said on Monday.

Cliffs initially said that it would make offers for both companies, but the two smaller firms said soon afterwards that they had agreed on a plan to combine their companies in a merger.

Spider's and KWG's main assets are a 26,5% stake each in the Big Daddy chromite project, in the Ring of Fire in Ontario. Cliffs owns the other 47% and wants to gain a controlling stake in the project so that it can determine the development schedule itself.

“Cliffs Natural Resources today announced that it continues to review its options with respect to making a formal offer for the common shares of KWG Resources and may not make such an offer in light of KWG's disclosure on May 25, 2010, only one day after Cliffs' announced intention to bid for KWG, that it has entered into a binding letter agreement to merge with Spider Resources Inc,” the company said in a statement.

Spider and KWG have options to increase their holdings to 30% each in Big Daddy.

Cliffs remains “firmly committed” to the offer for Spider, the firm said.

Shares in KWG Resources slipped 7,4% on Monday, to 12,5 Canadian cents each. Spider edged up, to to C$0,14 a share.

Cliffs is offering C$0,13 a share for Spider, and had indicated it would offer the same to KWG shareholders.

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