RE:RE:RE:RE:Stay Put or Sell? You are right! The Talbot deal with Rockcllff was a smart move by Hudbay!
Rockcliff paid all the exploration costs and now Hudbay is the operator. It can sit on the Talbot deposit for years, if it so chooses to do, because of a poorly drawn up contract. Both parties did agree to the terms. So Rockcliff must gone cap in hand to them for the exploration privileges.
In the end, it will still be a good deal for Rockcliff because when Hudbay chooses to begin to construct the mine, Hudbay has to pay all the upfront construction costs and Rockcliff still owns 35% of the mine. Hudbay may also become interested in the nearby Rockcliff Tower deposit at that juncture.
Keep in mind that at the time that Rockcliff's Talbot exploration was finally finished, the company had a plan to commence mining the Talbot and Tower deposits by trucking the mined ore up to the leased Bucko Lake nickel mill, which when upgraded would allow the company to produce a gold, silver and copper concentrate for shipping off to world markets.
Rockcliff Metals had a different manager at that time. He was production focused and had engineering experience in the mining field. He considered the leased upgraded mill a good plan and they were hoping to move from explorer to miner!
The suggestion that Hudbay stole the Talbot project from under Rockcliff's nose is simply stating a fact! Hudbay killed Rockcliff's efforts to become an actual miner. They needed both the Talbot deposit and the Tower deposit to make the mining deal a viable option. Because of the long distance from Talbot to Snow Lake, Rockcliff never thought that Hudbay would ever become interested enough in mining the Talbot mine. But Hudbay must have considered many different options to transport ore to Snow Lake. They must have a good one, already figured out!
So here we are. Rockcliff remains an explorer, until further notice.
The other two of Rockcliff's anchor deposits (Rail and Bur) may be seem small in relation to Lalor. But they both have good CuEq values and could be mined profitably.
Rockcliff has other early stage exploration projects which may also one day be mined with further exploration.
The issue that seems to be keeping Rockcliff's share price depressed at unreasonably cheap levels seems to be company's apparent focus on marketing the company for sale only to Hudbay. Since they are the only ones with the milling infrastructure already in place in Snow Lake, they are the most obvious choice as a potential acquirer.
However, if this would be the only strategy that Rockcliff has to market its company for sale, then they could wait for many years for Hudbay's Lalor deposit and all its nearby satellite deposits to be exhausted from mining in Snow Lake. Why should Rockcliff wait that long if there might exist other options?
It does take time for a new mine to be built. But from Hudbay's vantage point, they may feel in no hurry to acquire Rockcliff assets despite the fact that they encouraged the company to spend millions of exploration dollars on each project that they were 'given' to explore!
Rockcliff states:
"...Rockcliff's goal is to build critical mass in the strategic copper space by advancing its existing high-grade copper deposits and continue to explore its extensive property portfolio for the next big copper discovery within the world class Snow Lake mining camp..."
https://rockcliffmetals.com/about-us/overview/
So what does this mean to other potential shareholders? To me, as a shareholder today, it means that the company intends to grow its deposits to such a scale that they might entice other miners to take notice and so encourage them to buy the company outright.
Competiton never hurts. So If Rockcliff makes an interesting number of finds, then Hudbay might become interested in making a counter offer in response.
But obviously, Rockcliff Metals is clearly not yet there. But one day, maybe it will be! That's the gamble that investors today are taking.
That sale will likely happen, but when?
It will happen when Rockcliff makes that one significant find, or some combination of discoveries that will finally entice the right bid for the company! That's what an explorer is supposed to do!
Every exploration setback has consequences for the share price. But for risk taking individuals in the exploration space, they may still decide to keep on buying into that strategy, especially when the share price, remains so incredibly cheap!
Not so hard to understand, heh?
All the best! Java