hog, could you please RE-post the relevant sections of Liddy's Q&A where the term ' buy out' was mentioned and how your interpretations about what Elmer said about a buy out were formed? I think it is important that we all fully understand what he said or didn't say in the proper context. TIA.

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Sure Foxy, I will highlight what I read and how I percieved his response below...

2. What is the status of our negotiations with Teck. I know we are waiting to hear from them. But how close do you think they are to making a decision? I understand Teck is asking questions and CUU has been answering these questions. What kind of questions are they asking? Technical FS related, or JV or prices for buying the project/company?

They are assessing their rights under the Option Agreement. I think they want to understand how we did the Feasibility Study, the logic behind it. Based on their questions I think they are trying to decide what they want to do with SC. They have 2 choices walk away or earn back their interest. I think they are trying to make their mind up as to what they are going.

Liddy asked if they were asking questions about prices for buyout (3 choices total). Elmer answered only 2 choices - buyout skipped right over.

5. How will Teck and CUU arrive at a fair price for a buyout given our SP and world financial stability? You mention Real Options Case (ROC) valuations as a current method of valuing mines. Our ROC at 8% NPV is $1.3 Billion. What would a miner pay for that ROC?

There is no mention of a buyout. Teck has the right pursuant to the Option Agreement to earn back into the project. If Teck is considering a buyout, that is something we are not aware of.

Seems pretty black and white to me, what could he have said to be more clear here? No wink or nudge or read between the lines for me anyways. If there were verbal price discussions and this was even a remote chance why would he slam the door so hard on this? Wouldn't he be opening himself up to scrutiny if we were bought out soon after such a staement?

8. Any chance of Teck buying us out 100%? Is that why Teck has not transferred the Liard shares? If he beats around the bush and say they aren't important right now, then counter with: But the BC hydro NR was deemed material and that NR basically says we are intending to apply for power. How could the status of all those Liard shares not be more material?

Can’t tell you that. Anything I tell you would be speculation and I believe there is already too much of that going on. People need to understand that if Teck was to make an offer, we would have to issue a NR very, very quickly. We under the rules of the Exchange, cannot sit on something that is material. If Teck was to deliver an offer, then we will have to issue a NR. Usually it has to be based on something concrete. It’s not like maybe we’re going to do this or that. Until it is definitive you don’t really know what you have.

I admit there is that bit at the end that says it must be concrete for a NR, so maybe a crack open there, but in the context of the whole discussion I think the door is closed. Just my opinion, though.


So basically the talk about a deal already been made months ago is all baloney?

There’s been no deal made with Teck. If there was a deal made, there would have been a NR out announcing that. To the best of my knowledge, that has never been a deal discussed with Teck.

Here he goes out so far as to say a deal has never even been discussed...

Still, any back in would be great and we should jump dramatically from here short term, and even higher later as results start coming in. Teck backing in only causes them to lose their FROR, so we can have bidding wars, sell to anyone and no more muzzle on news releases by Teck.

This is all assuming that CUU doesn't write favorable conditions for Teck in the new JV agreement like giving them back the FROR and muzzle. Hopefully they play their hand a little stronger once we have a buy in committment.