Is this acceptable?

Yes, it's fine. Teck is just holding the paper but we have exactly the right amount of ownership of the Liard shares as we ever were expected to own once Teck backed in for 75%.

Here's an explanation from Mike Smith sent to me in February 2011:

Upon completion of the feasibility Study Copper Fox will have a 100% working interest in Schaft Creek and an overall 93.4 interest. The remaining 6.6% interest is held as a Net Profits Interest by Liard Copper Mines Ltd. We calculate this NPI does not participate in the project revenue until years 10/11 after production. Thus, should Teck elect for a 75% earn back, then for the first 10 years revenue is split 75%/25% between Teck and Copper Fox and subsequently 70.5 Teck and 23.35% Copper Fox.

On top of this we have our direct ownership in Liard that we bought outside the agreement with Teck. It is approximately 1.8% of Liard.

Personally, I choose to believe that Teck wanting to hold the Liard shares is a positive thing since it almost implies they intend to own it all one day. For us it changes nothing.

[As much as any of us think that we're losers for losing quite a bit of money investing in this stock (if we sold today) I don't think that compares to the people on places like SH who spend so much time heckling the investors. At least we're only in danger of losing money, whereas they voluntarily lose time and nothing is more valuable. As the great Michael LeBoeuf said, "Waste your money and you're only out of money, but waste your time and you've lost a part of your life." In other words, if you listen to them you are taking advice from a bigger loser, so don't.]