Teck what have you got yourself into?
From Scotty(thanks)
Just for illustrative purposes, lets say the entire project generates a profit of $100. Copper Fox's portion is $23.50. Teck's cut is $75.00. However, Liard is due $30 of all profits. I am assuming that CopperFox and Teck will need to pay Liard in proportion to their ownership of the physical properties i.e. 23.5% of the $30 comes from CUU and 75% of the $30 will come from Teck. Therefore, for every $23.50 that Copper Fox earns, it will surrender $7.05 to Liard. For every $75 that Teck earns, it will surrender $22.50 to Liard. 79.5% of everything that Liard earns GOES BACK TO CUU. Using these assumptions, Copper Fox's total take would be around $40.30 for every $100 of profit generated, or roughly 40% of all profits from the Schaft Creek project.
From Vette (thanks)
CUU won't exist for very long trust me.
Most don't know this but in the Liard agreement with Teck, Teck must spend 3 billion in under 4 years ont he Schaft Mine if they want to acquire the 75%. In other word they have to start on day 1.
Until that is all done CUU stays the operator until the mine is up and running.
Teck will never let a junior call the shots...their only option is all or nothing. Both options are great for us.
If Teck let's CUU release the Feasibility it will cause a bidding war on that 25% , so expect something before Feasibility. Teck is already in the know since they sign off on the CUU NR's and they meet bi-weekley on the feasibility.
Teck does not want people like Barrick, Freeport etc to know that CUU can produce copper at Negative1$/pound.
This will create a bidding war since CUU already owns 10 million OZ gold....on 0.25% of the potential....
Wouldn’t these be the exact reasons why Copper Fox should not accept a buyout offer fromTeck until after the Feasibility is released??
Yes,unless the offer is really good!
The market appears to be pricing in the uncertainty of the Teck agreement and what their intentions are. Let’s face the facts, we are just shy of a 1 billion market cap and I now believe we will need an indication from Teck as to what their plans are before the price moves accordingly. Re-read what Scotty and Vette wrote about the back-in agreement. I think Teck got caught with their pants down on the back-in agreement and are now scrambling to figure out a way to keep this new mining district. I hope CUU sticks them with a hefty bill to clean up their mess. If CUU accepts the first offer they are crazy!!! Price movement could be a staircase from offer to offer as we keep demanding a larger return lol. If they let this go for less than $6.50 I’ll never invest with this management team again.