Tudor Gold Corp V.TUD

Tudor essentially must still meet option terms on TC

[rockport1]

Another way to view the carried 60/20/20 terms on Treaty Creek, is that Tudor is still conducting exploration to meet the option terms.  For example, if it will cost another $100 million to go through all the stages to a production decision (PEA x ?, PFS, FS, etc.), they are, in practical terms, spending $100 million to earn that 60% interest.  You can substitute whatever amount you think it will take to reach a production decision.

This would be required in order to advance the project. The caveat is, if it is too costly for Tudor, they could just sit and wait for an offer from another entity with deeper pockets, and still retain their 60% interest.  They could also just wait until the capital markets for junior explorers and/or the share price improves before conducting further exploration. 

My guess is that once the Goldstorm deposit is properly defined, and at least one PEA produced, Tudor may have to enter discussions with the other two partners to renegotiate the terms or consolidate the interests. The main scenario that would make this uneccessary is the one above, where gold and/or copper continues to run, and Tudor's share price follows suit. That may make the raising of capital reasonable, so they could continue the exploration with the current terms.

[Jetstream1281]

The difference between out calulations is that you're using the public float and I'm using outstanding shares.....

[Larry60]

Yes Rock, TUD will have to raise at least another $100M in next few years at a minimum.  That could easily mean another 100 million shares plus 50 million warrants.  That alone should lead to AMK trading 50% above its relaive value on TC to TUD.  Between that and current discount, AMK should be trading well into the 20s in current market. Ive never seen the full JV agreement. 

[cskhurasu]

Your $100 million estimate to reach a production decision at TC is ridiculously low. KSM has nearly $1 billion invested and they have not finished a final Feasibility Study. 

[Larry60]

CSK, Id agree $100M is lite.....to say the least.  But its a starting point...........could end up being hurdreds of millions ...... The bigger issue is TUD carrying 100% of the load.  Short of TUD trading at a massive discount to AMK/TUO there is ZERO point in holdng it unless you want to give away money (unless your looking to deploy tens of millions into TC, practically you need TUD