I didn't believe it at 1st. I got it from Jason, as if this was a new detail because I didn't bring it up. Then I confirmed with the 3 others..

Interesting find. That is what the contract says...that in order to earn back their percentage Teck has to solely fund subsequent Expenditures. I sort of think the JV can change that clause but I would hope it somehow gives us more power in these negotiations.

Expenditures is defined as:

all cash payments, expenditures reqirements and royalties payably by [Teck] as contemplated in 5.1(a) and all costs, expenses, charges and outlays, direct and indirect, funded or incurred by [Teck] on or in respect of the Property during the term of the Option, including, without limiting generality, all on-site costs, including but not limited to, costs for prospecting, claim staking, tenure obligations, taxes, mapping, surveying, permitting, geochemical surveys, geophysical surveys, sampling, assaying, trenching, drilling, gechemical analyses, road builidng, drill site preparation, drafting, report writing, consultants, professional fees (including legal and accounting) and all other project expenditures;

it also goes on to say that during the term of the Option they would have the right to:

4.1(c) do such prospecting, exploration, development or other mining work thereon and thereunder as [Teck] in its sole discretion may consider advisable and including, without limitations, the removal of ores, minerals and metals from the Property but only for the purpose of testing;

This clause above is one of the clauses that Teck would be subject to while they earn back their percentage. So it clearly states they can't actually mine and have to spend the money on expenditures (as defined.) Huh.