Negotiations

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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%)

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Negotiations

posted on Jun 12, 2013 06:16PM

I have a slightly different speculation re the meaning of the last news release.

1. Teck has informed Copper Fox that they intend to earn back x% (most likely 75%).Although unannounced, Teck thereby meets the 120 day requirement.

2. Teck acknowledges Copper Fox’s intent to sell both the remaining 100-x% and Copper Fox’s other interests in the surrounding area.

3. Desiring to have an amicable partner and not wanting to finance Copper Fox’s share, Teck agrees to work with Copper Fox to sell its interest to a third party.That sale may involve part of Teck’s percentage so that Teck does not have to put up as much capital. Either way, y% will be sold to one or more third parties leaving Teck with 100-y%.

4. Working out the details with the third party or parties (prices, percentages, taxes, timelines, legalities, etc.) is taking longer than 120 days.

5. Copper Fox, being desirous of selling 100-x% (and uneager to arrange financing), is willing to go along with Teck’s arrangements for finding a buyer.

6. The mechanism will work by Teck taking 75% and then jointly with Copper Fox selling y% to third parties.

7. In this manner, Teck arranges the sale (rather than financing) of Copper Fox.Besides sharing the risk and lowering its contribution to capital, Teck would renegotiate expenditure commitments that would achieve immediate ownership without earnback.The third party gets access to a long life, safe, and prospective district.Copper Fox monetizes its interests in the area and leaves behind happy partners.Everyone wins.