Re: ..Who is selling? Question
in response to
by
posted on
Jan 09, 2013 08:43AM
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%)
if Teck excercises its back in right for 75% do they have to spend the full ~$360M? Or could they, for instance, spend $50M and then back out a year later?
Most of the terms are in the Salazar agreement here:
The langauge is generally interpreted that Teck does not earn its backin percentage until the specified multiple of costs has been invested in the mine, 4X for 75%
There is another agreement that specifies a 4 year period to production in order to earn their interest
This entire agreement however, according to Paragraph 15.1, muct be superceded by another which will allow for renegotiating all of the included terms, within 60 days of the BFS delivery