Teck back-in?

Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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realcdn

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Teck back-in?

posted on Nov 16, 2011 11:49AM

Assuming Teck went for the 75% earn-back option and had to spend $300M in capital expenditures, can someone please explain again how this would play out and affect our share value?

i.e. does mean we only really benefit by $300M x 25% (our share)?

What about the remaining say $3.5B cap-ex required to build the mine? Would we be responsible for financing 25% of this?

Sorry, I thought I had this straight in my head but now I'm getting confused! It seems like a no brainer for Teck to spend $300M and get 75% of our property.... but I don't see how that really benefits us?