B.C. Fascism The gov is trying to bleed Booker into bankruptcy. They know that it will be extremely hard to raise capital after all of the problems the company has had as well as the lengthy delays. How many times can John go back to the same people for money? I doubt many will oblige this time around. Let's not forget how bad the resource market is right now, how soft metals prices are, and what is happening in China! Demand destruction is happening all across the commodity space, as evidence of the 6-year low copper price and 10 year low iron ore price.
This recent delay, asking for more assessment, is appalling and the gov knows it. They are in control and this is the way they want it to be played out. Delay, delay and hope they go away. I must say however, that this is a very risky play by the Indians. 30% (or whatever their provincial cut is) of 0 is zero. If this all blows up, and booker fails, LBN gets nothing. Ever.
I believe the best option is for the company is to litigate for damages around $150M - $200M. It is time to stand up for what is right, based on principal. If the company could prove to the courts that the government misled the company into believing that a mine would go in but actually never allowed them to proceed after spending $20M and 15+ years, I think the courts would rule in their favor. The MLRMP and MOU would be fundamental, as would the clean effects assessment. I realize I am bias, but I think it would be a slam dunk.
Not only would this be great for shareholders, the gov would be held accountable for their actions publcily and humiliated for the way they have treated PBM. Maybe they turn Morrison into a provincial park like they did in Southeastern BC when US Activist groups halted mining in the mid 2000s during the Campbell era? Guess what CHief Adams, a provincial park would not pay you $5M per year for the next 21 years...oh wait, that wasn't enough anyway.
We definitely have a case and I would be in favor of allocating money towards this opposed to funding the current mgmt group, or some lobbyist, or by trying to negotiate with the Indians for another X amount of years. Let's put closure on this and take a stand.