RE:RE:RE:Does TUD deserve premium for control???UncleSon wrote: R. thanks for your comments. Not sure my question has been answered. Simply, if I were stalking TC I would game out benefit of buying control of it for 40% off buy only buying TUD. I could then proceed to build out mine as I wanted also for 40% off and possibly catch a struggling "arms length" joint venturer co-owner and developer paying for construction costs with great difficulty (AMK for sure whose share of Capex might look like $75-$100 million) in an unable to pay situation in need of a renegotion on their 20%. This seems to me to be a real possibility. What is to keep an acquirer from paying only for TUD and causing the junior minority owners of TC to be forced to finally start paying their share?? TUO is smartly keeping its self together and not spending cash for this very reason I guarantee you as Dino is thinking that is what he would do if he was moving on TC as a newcomer. Not slamming AMK or TUO just putting out their what I perceive to be an undisclosed risk of owning them.
Great question UncleSon. If Teuton or AMK still own 20% of Treaty Creek when a production notice is given, they will have not paid for any development costs up to that point. When production begins, they would be responsible for 20% of the operating costs of the mine, and any downstream capex, but also would be entitled to 20% of the profit. Since this mine is looking like a very profitable open pit mine (from my perspective and at this point in time), that would be the best thing ever for TUO shareholders. We would have the nsr off the top, a healthy profit on operations, and we could still sell off the 20% (of a now very profitable cash generating mine) possibly for more money than we could get today.
In my evaluations of risk/reward for my TUO investment, holding on to the property for the long term until the mine is developed has been a potential sweet spot for me since it became clear that the 300 Horizon is a big win.
Please note that Walter Storm and crew developed and built the Osisko mine before selling it off for top dollar. No reason Tudor can't do the same with Teuton hanging on for most of the ride free, then becoming an operating partner for 20% of the profits.
Such a project would likely continue until after Walter Storm retires, but there will be a replacement for Walter who is every bit as dedicated to getting the best deal for investors.
Do your own due diligence. GLTA. Doug