Pool Judging question
posted on
Jul 13, 2012 05:42PM
I didn't enter the pool becaise I believe there is a good chance that the deal won't be a simple cash deal. May comtain Teck stock, may comtain favorable option agreements on variois properties, in and out of original agreement area and may have drilling expense reimbursement for future exploration payable as incurred on certain areas. May have other features I haven't thought of. In other words we could get 3.50 in cash , 2.00 in Teck stock and 1.50 in favorable concessions. Remember, Teck has always stated that they are not explorers, but miners amd they prefer others to do their explorimg and "proving up". Therefore, it might not be simple to come up with an actual price that would be equivalent to the present value of the deal. Especially, considering the fact that we bought 2 new properties in Arizona, it appears that we are going to be an ongoing enterprise. Of course, we may have bought those properties because Teck wants them and they asked us to buy them, fully intending to buy all of CUU, the extra properties helping them to justfy a higher cash price. In any event, it may be difficult to come up with a simple buyout price.
Rip