Tudor Gold Corp V.TUD

MTT compensation for exploration funding?

[rockport1]

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?

[Larry60]

Thats not an unreasonable approach.  I think $50M with a rerout from existing resource would be a huge win for both sides.  That payment would be divied up amongst teh 3 amigos.  TUD can use their share to keep drilling as is required of them According to Rudi, TUD has shown no interst in discussing.  I dont get why but thats what he says an TUD has never contradicted it. One

[rockport1]

The quicker they negotiate such an alternative route, the better for all parties.  I would expect Seabridge would see a decent re-rate of their share price, and open the door for a buyout.  The Treaty Creek Three would all see much needed capital for exploration, and remove any uncertainty that might currently be overhanging their share prices.  In the future, once they wrap up

[Larry60]

I dont know itll help shae price short term.  But with a $2 billion market cap, they gotta get going on making KSM happen.  Likely still caught up in the wrong phase of the lassonde curve........thats the way it goes!!

[cskhurasu]

Why do you think SEA share price would be re-rated by negotiating a new route for its MTT with TUD? SEA has disclosed in its financial statements that it does not need anything from TUD to permit and build the MTT based on two letters from the BC government. By implying they need TUD to get a deal you are implying they are failing to disclose a material fact. I don't think Rudi is that stupid

[Boebandy]

Thank you for rudi's typewriters comment. Why are you here. Please leave.