Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

Free
Message: Teck opts out to increase interest in Fort Hills...
Reply New Message
Prev Message Back To Forum Threaded View Next Message

“That is where you are not correct; TECK will have a partner for 25% of SC that WILL NOT share the costs at all. TECK is responsible for all costs all the way to production…”

Well. . . Teck has to arrange the project debt financing for the costs through to production but that financing does have to be paid back out of our share of profits with interest.
Firstly, Teck is to try and get debt financing for the whole project, and if they further have to provide us with a subordinated loan it is at the rate of Prime +2%. Then there is something like 5% of CUU's pro rata share of the principal if they have to post completion guarantees. It's obviously tricky.
The point is, although Teck has to back up the financing for the project, and guarantee it, we end up paying them for that service. If someone were to buy CUU out, with the JV intact, they might choose to supply their own financing and save some money.
18 Recommendations
Reply New Message
Prev Message Back To Forum Threaded View Next Message
Share
Share
New Message
Please login to post a reply