Forcing Teck to act.

I have a feeling Teck may not have much choice in the matter. Once the BFS is done we are open for offers. There are a number of ways an offer can be constructed to allow for Teck to make an option.

What people seem to gloss over is that we own the whole pot until Teck spends the full amount for it's option and that allows us to drill like crazy. So, does Teck want us drilling up everything we can poke a hole in while they decide what to do and then while they Earn Back In?

Assume they take the full meal deal, 75% and 4 years (to spend about 300 million). So 4 years and 4 months. This is what people are missing. Until that last penny is spent we can do what we want on our dime of course. The BFS just concludes the Earn Back applicable expenses while triggering the clock! It does not stop us from adding value to a mine that we own a big chunk of. At this point we could get a loan for the drilling and avoid diluting. When they said they have their financial ducks in a row they meant this. (We can add to this that Teck must also negotiate a JV with us).

Teck would be very pleased to see more value and so would any buyer but the buyer would also see the cost go up big time. We would no longer be drilling on spec. We would be drilling for value. This is why the Titans and aerial were done under applicable expenses. Teck does not want to see this value go to another party unless Teck is the one doing the offering.

Now, there's the land we own. So we drill it up and sell it to OUR MINE. I do know they have mineral value. I even have some idea of how much the properties are worth. In addition, I've been right about what's coming from the ground because I've done my homework. So even if it turns out I'm only partially right what I'm going to say next is valuable to the company. The geology heading North is more likely to contain more silver and gold. It is becoming more brechiated and the field work suggest this is the direction we should head. I have not been rah rah'ing to pump people about the higher grades of gold and silver. I have reason to believe it's there. Before I knew this much about geology and the field work people had done I was there. I met people who had a lot of knowledge of the area. We talked. Now I have seen the results (25 year later) and they are removing the cap of "low grade deposits".

If we get the BFS on the table this coming Q we may see some action. I suspect a lot of it will go on behind the scenes as people try work out deals before one comes publically. Because of the assurity contained in the contract and the prospects we have proven I will not be surprised if an offer comes by stealth. This could happen any time and that does include now, without a BFS. This tax loss season could rob a lot of people.