Another Theory.
in response to
by
posted on
Jul 11, 2012 09:09AM
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%)
I just thought I would put forward a simple theory on things. The recent purchases were simply to increase our value in a buyout situation.
I haven't had a chance to do enough DD on the recent purchase but I'm guessing we are simply adding more reserves. For instance say 1 billion lbs of copper(I'm just pulling this number from my butt) for $2 million when we can likely get say $100 million for it. I'm assuming $.10 per lbs of copper which might be a bit high but I think it shows the point.
CUU2 would be great, but management has always stated they want to sell. So instead of just selling what you have, why not add more minerals for cheap knowing you can likely get more when you are sold?