RE: TeckCUU calls the shots on the mine development until the JV is formed and the mine goes into operation. Then at 40% Teck assumes control as though they had 50% or they bit the bullet and take the 75% but are still under the same terms until operations begin. I doubt Teck wants us calling the shots.
Teck has a history of making huge blunders. I would fire the board. This is why they didn't buy us out earlier. Ya they like to say they are not in the exploration business and just like partnerships but at what cost? They do have the cash and could raise more. I think that Sorros sold Nova because it's stuck behind Teck and has no exit so if Teck is slowing up on Galore it makes sense for him to sell. That would indicate that Teck is looking at us. To that I say FINALLY.
CUU can just be plugged in and it's a go. Galore needs a tunnel, costly power line and a major road. So the genius management at Galore finally figured out that the guys closest to the power line are the cheapest to get going. And what, it only took 2 years.
The new land may complicate matters. The contract states that it must be offered up but doesn't ascribe a value to it. It falls into the back in but since it does not have BFS data the value needs to be determined. Suppose there are 2.5 Schaft Creeks there as shown by the fly over. Without drilling they can't add it to the resources. That would mean Teck excludes it, renegotiates the back in clause specifically for the new land, or offers a serious price as expansion land. To us, this last one is free money. We don't have to do any work.
So why did Elmer complicate matters so late in the game? The JV is by negotiation. We have 1-2 Schaft Creeks leverage at that table. This was an attempt to get ahead of Teck who wasn't ready. It's not like Teck didn't know this was happening so we can assume they agree with it. It will just come down to agreeing on a value. The fair practice would be allowing time to prove it up otherwise Teck must accept it as an unknown and pay up. CUU is within rights to demand fair market value. So what we might end up with is a CUU 2.0! With all the money we are going to make the IPO will be crowded.
Don't forget that CUU is in control until the last obligation is met by Teck and that's gotta suck for them.