MTT compensation for exploration funding?Given the tough market for funding resource juniors, perhaps now is a good time to negotiate the compensation for the MTT. The parties could work out an alternative route, that the Treaty Creek Three is willing to give-up for a substantial compensation amount,
For example, they could offer up a "Northern" route that is sufficiently North of Perfectstorm, Goldstorm and Orpiment/CBS, that it shouldn't interfere with any potential from these orezones. It would be at the cost of partial GR2, and other potential zones in the new route. The TC3 could still maintain rights as proposed in the 2014 application, just that it is now an alternative route. The LoO/RoW rights could be restricted to the corridor required for safe operation of the tunnels.
This is good for Seabridge, so that they can get moving on tunnel development, and perhaps the certainty will allow them to attract a third party buyout. For the TC3, this should provide a significant amount of funding to progress development, and alleviate any issues surrounding the status of the current MTT route. It will minimize share dilution. They will still have two or three monster deposits to develop before worrying about any lost potential of the Northern route.
Arguably, compensation for sterilizing part of Goldstorm would likely be in the hundreds of millions, possibly reaching the billions if it severely disrupted the Goldstorm/Perfectstorm/CBS mining plans. So the question is what amount amount would both be acceptable for both parties for a Northern route?
It is a route that to date, has seen little exploration, so no resource has been defined. It should be a reasonsable compensation under these realities. Of course, condemnation drilling would need to take place before a final number could be reached; don't want to sterlize some additional "supercells". It is running along the Kyba Red Line afterall. Perhaps a number could be reached in the $50 million to $100 million range?
Opinions?