Re: Mineweb Article - Thoughts
in response to
by
posted on
Jul 18, 2013 10:58AM
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%)
The difference lies in the minimum amount invested. With the new agreement, Teck only had to pay $24M to earn 75%. With the old agreement, Teck had to pay $350M before they earned their 75%.
Teck has no obligation to spend $60M on exploration and no obligation to payout the other $40M to CUU. If they don't like what they see, they can stop spending money on it and still have their 75%. I like the new agreement because it limits dilution but I hate how there is no obligation for Teck to spend money exploring.