I originally brough this up because I keep reading around here that Teck would buy us out because we are basically dead weight. But really we are holding up our side of things. Its just we are letting Teck roll our portion up into a nice neat package with all the other finacing required.

I think there is a disadvantage to Teck to have to arrange financing for the whole project while owning 75%. Even though we have to pay them back, plus interest, it might affect their debt to equity ratio and that sets the terms of their company-wide borrowing. Although their books might show a loan to us payable I don't know how that would come out in the wash in terms of their overall debt but I'm betting our loan debt would be worth zip to any lender.

They will have to get the mine built and producing too, taking all the risks, before they will see any money. Even if we were to theoretically owe them there's no way we could ever be made to pay. Once started Teck would be able to put SC up to guarantee the financing but if they defaulted they would lose it and all their costs to that point.

It seems like a poor business place to be in if I were making the decisions. Makes much more sense to buy us out and sell to another partner with their own funds or who at least have something to lose (beside us wee shareholders money.)