I phoned for clarification on the PAC credits. I'm still a bit confused but this is the story.

We gain credits by doing work on our claims. We don't need to use them anymore for Schaft Creek because we don't own the claims anymore, or any in BC.

We can't do anything with the credits currently.

We could sell our credits to another company working in BC that would be able to use them to extend their claims. There are, however, rules about this.

If we sell our credits the other company would have to actually pay us for them, they are not transferred for free. The other company would have to do work on their own claims and then buy credits in order to renew their claims if they did not do enough work. They can only buy up to 30% of our PAC to top up their own work credits.

For example, if they spend $100 but need $130 to extend their claims then they could buy the extra $30 worth of credits from us. If we owned Carmax, then presumably we could use these credits there, but if Carmax is a separate legal corporation they would still have to pay Copper Fox.

There can't be many instances whereby anyone would actually buy the credits from us, and they do not sit on our books as an asset. Apparently though, many years ago we sold about $100K. It is conceivable that Teck might buy some because they have lots and lots of claims but since they are paying the same amount as doing work, then maybe doing some work is the better choice.