RE: RE: RE: DON'T PANIC It's diificult to say exeactly what it will mean as far as Western Copper is concerned because it is somewhat subjective.
To me the obvious thing is that 2 of these royalties were under an agreement for sale last year but didn't close. If you go back through some of the old Strategic news you'll find that Strategic had originally signed an agreement to sell their Kink 3 and Northern Dancer (Logtung) royalties to an Alberta compnay for about $13 million.
It didn't close.
Now they announce they have closed the sale of Kink 3, Logtung and Casino for $30 million with an escalation of $6 million if Casino gets permitted by 2016.
That looks like the buyer has just paid Strategic at least $17 million for the 5% nsr on Casino regardless of IF or when it gets permitted and will pay another 6 million if permits are received within 4 years.
Regardless of the substantial value placed on Kink 3 and Northern Dancer what it says to me is that somebody has placed a large bet that Casino will move forward under one owner or another.
What it's really worth to WRN is a bigger exercise to try and run because it really is apples and oranges but if a 5% NSR is worth $17 - $23 million today for future revenue then you would expect that the purchaser would expect a return of greater than $17-$23 million over time. Regardless of apples and oranges if 5% is worth $23 million somebody thinks Casino will move ahead and given the current valuation of $100 million compared to their stated After -Tax NPV@8% of between between 1 and 2.5 billion....I think that presents a really big chunk of viable upside and thats is what I'm after.
I think the Yukon is in for a huge mining boom. Lets face it, what else can you do in the Yukon besides mine and shovel snow so the government has to get behind mining projects and there is a lot of foreign money looking to be deployed strategically. I'd really like to know who the royalty buyer was.