OTCPK:EXSFF - Post by User
Comment by
PhillyJackon Mar 24, 2016 12:55pm
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Post# 24697999
RE:RE:RE:Option grants - financing - lack of drill results
RE:RE:RE:Option grants - financing - lack of drill resultsThis is by no means a bad deal for Teck. Instead of spending a small fortune on exploration, a major like Teck can simply cherry pick projects pitched to them by cash-strapped juniors. TPW already has a million ounces drilled off . . . not necessarily in the best configuration/distribution, as BV has pointed out, but most of the property remains unexplored . . . especially at depth. The Lake Shore property to the west has been valued at close to $1 billion by the Tahoe deal. MEK has gotten interesting results to the east and a 50/50 JV deal with Goldcorp. So for drilling three holes so far on TPW, TCK has the option to pick up 70% by spending $12 million. I'm guessing they can walk away at any time before spending that money. IF CD's model and 100+ drill holes that have hit gold are correct, and the HMC scenario of 20-30 million ounces lies at depth, this deal will turn out to be a steal for TCK. Question is, how much will they be willing to pony up for the other 30%?