The 60 million that must be spent on exploration is our anti-mothball clause. That is a juniors dream to have that large of exploration budget. We can surely increase the value with additional drilling. Only 85 million was spent in the previous years - so 70% more money will yield more certaincy and value for the whole project.
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"I thought they had to make the production decision to proceed past 20 million? "
QUESTION: Did you not read the NR, or are you on purpose mixing apples and oranges?
Terms of the Agreement:
*Teck will pay a total of $60 million in three direct cash payments to Copper Fox: $20 million upon signing the Schaft Creek Joint Venture Agreement, $20 million upon a Production Decision, and $20 million upon the completion of the mine facility.
*In addition, Teck will fund 100% of costs incurred prior to a production decision up to $60 million; Copper Fox's pro rata share of any pre-production costs in excess of $60 million will be funded by Teck and the direct cash payments payable to Copper Fox will be reduced by an equivalent amount, and Teck will fund any additional costs incurred prior to a production decision, if required, by way of loan to Copper Fox to the extent of its pro rata share, without dilution to Copper Fox's 25% joint venture interest.
