I talked with Elmer in Vancouver at the resource show end of January about a few scenarios for CUU. For whatever reason, he didn't seem that keen on a spinco that involved starting a whole new company (lots of legal paperwork, etc. he said). I can't see starting a new co. being that big of a deal, but maybe it is and maybe it means renegotiating the Teck relationship from scratch.

If Teck didn't buy us out entirely, Elmer seemed keen on a big dividend for shareholders, and then CUU 2.0, where we go and prove up the rest of the 'district.' Not a bad plan in my mind, as long as the dividend is very big, and people can choose to keep riding the Fox or move on as they see fit. I think Elmer liked this option, because he's a geologist in training and at heart, and he would love the opportunity to prove out a mammoth deposit in this area over the coming years.

And, imo, as much as it is a pain to have to cater to Teck somewhat for CUU, we also have a partner with deep pockets who is very unlikely to walk away from Schaft Creek and the extended trend going up North (and South?). Why not buy out lots of the deposit if you are Teck and have Elmer and co. keep exploring if they are willing, under favorable conditions to both parties?

Elmer suggested to me that there were three main options: total buyout, dividend and continued CUU exploration, or buyout and spinco (i.e. new co.). It was only the latter option he didn't really like that much.