Cliffs Natural Resources Inc announced that it has increased its cash take over bid for Spider Resources Inc to CAD 0.19 per share from CAD 0.13 per share.

The release said that “The Board of Directors of Spider has determined that the Revised Offer is a superior proposal as compared to the amended terms of the proposed merger with KWG Resources Inc announced by Spider.”

Cliffs also announced that it has executed a lock up agreement with Spider's largest shareholder supporting its Revised Offer.

Cliffs said the Revised Offer includes conditions that Spider execute a support agreement with Cliffs and that Cliffs receive commitments in the form of lock-ups from Spider’s directors and officers to tender their shares and vote against the Merger. Cliffs’ Revised Offer is also conditional on Spider terminating its agreement with KWG concerning the Merger.

Cliffs increased the proposed price to CAD 0.19 after being informed by Spider that Spider’s Special Committee had determined that KWG, in a revised offer in respect of the Merger, had matched Cliffs’ previous proposal of CAD 0.165 per share.