The new corporate presentation has provided a better explanation of the JV agreement with Teck regarding the payments to CUU.

Teck can spend the first $60million with no further cost to ourselves, and they've given us $20million.

The next $80million Teck spends on the project prior to making a production decision wipes out our third payment of $20million. (That's the payment that would have been due to us upon completion of construction.) At this point Teck will have spent a total of $140million pre-production.

The next $80million Teck spends removes the obligation to pay us the $20million that was due on the production decision. At that point Teck would have spent a total of $220million in pre-production work.

If Teck spends over $220million then we owe them our share of the costs, which they will fund.

I don't really see the advantage to Teck to make an official production decision with any haste, given this arrangement. It works out for us that we get the same value for the money, but the money is being spent by Teck on our behalf on SC.

I wonder why they are explaining this now? It's interesting too because it means that Desert Fox may never get its hands on the money so they have to spin it off and consolidate and go for more funding, I would assume this Fall.

I would imagine that even if we don't get to hear the results of all the work Teck is doing, we get a budget from them to know where we stand vis-a-vis this contract.