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Originally Posted by blkgsr
uh? teck can only buy in for 75%....nothing more
i don't get what you mean re finacing for CUU shares?
how exactly is teck going to "buy us out"....they don't get my shares until i sell them or until CUU sells the company (which they aren't doing with the teck buy back)....teck just get's a 75% stake in the project
correct me if i'm wrong
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My bad if I explained poorly. This is what i got from CUU website.
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Teck Option Agreement:
Teck may at any time elect to exercise the earn-back terms and conditions of the Option Agreement.
On receipt of a Positive Bankable Feasibility Study, a defined term in the Option Agreement, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive common shares of Copper Fox to a value of $1,000,000.
If Teck elects to exercise its earn-back option pursuant to the Option Agreement, then Teck has the right to elect to acquire either a 20%, a 40% or a 75% working interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures pursuant to the Option Agreement. In the event Teck elects to earn-back a 75% working interest in the Schaft Creek Project, Teck will be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached.
An example of how the Teck earn-back option works based on the assumption that Teck elects to exercise either 20%, 40% or 75% earn-back is set out below. This example assumes that Copper Fox has incurred a total of $50.0 million of qualifying expenditures pursuant to the Option Agreement at the time Teck makes its election.
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Basically, I think it's more worth it for Teck to buy out CUU completely instead just keeping 75% interest or less. Leaving CUU around with a 25% interest on a mine like Schaft Creek will create an opportunity for players to step in or take advantage.