Just a quibble though in Mike's logic....

If Teck were not interested why would the "right of first offer" be so important? What he appears to be saying is that Teck doesn't look interested enough to pay our ask.

Another thing, if Teck were not that interested it would be better for them to get a paying partner immediately rather than delay.

If Teck weren't interested they should be dressing this up very fancy sooner rather than later, and they should help us promote the project not keep it hidden.

-Prospekt

Your first comment is spot on. It tells me Ernesto is not giving this away based on a temporary market cycle hurt further by a contraction in liquidity that has damaged the commodities industry. The mountain is still there. He is playing hardball and I respect that.

"Right of First Offer" vs "Right of First Refusal" is my take on his Mike's logic. The latter allows Teck to wait until a deal is in place and step into the Purchaser's shoes. The former is a one time take it or leave it opportunity that plays into CUU's hand once the time is right. It doesn't allow Teck to play games, while lurking in the weeds.

Further, his logic does make sense if the Purchaser is CIC, or a company contolled by CIC. Reason being, CIC owns ~17% of Teck. If Teck were to take out CUU, CIC gets a free ride for 17%. If Teck feels 75% is plenty, CIC would be the logical purchaser after the ROFO is waived. Teck keeps their 75% and CIC, or subsidiary, takes an additional stake in the project. I suspect they both want to underpay for the property but CIC will have a greater need for it....and maybe make some use of those USD cash reserves sitting around.

Felix P. Chee, Head of CIC remains on Teck's Board. You don't necessarily want to bite the hand that feeds you...so to speak. To put it another way. If you owned 75% of a public entity with your brother and he wanted the other 25% would you dress it up before he secured it?

DC14