According to the Copper Fox (CUU)/Teck JV agreement (see CUU website):

 ·         "Teck will pay a total of $60 million in three direct cash payments to Copper Fox: $20 million upon signing the Joint Venture Agreement (PAID), $20 million upon a Production Decision, and $20 million upon the completion of the mine facility.

 ·         Teck will fund 100% of costs incurred prior to a production decision up to $60 million; Copper Fox's pro rata share of any pre-production costs in excess of $60 million will be funded by Teck and the two remaining direct cash payments payable to Copper Fox will be reduced by an amount equal to 25% of the expenditure in excess of the initial $60 million.

 ·         Teck will fund any additional costs (in excess of $220 million) incurred prior to a production decision, if required, by way of loan (at an interest rate of prime +2%) to Copper Fox to the extent of its pro rata share, without dilution to Copper Fox's 25% joint venture interest".

This essentially means that CUU would own 25% of the completed mine facility at no additional cost other than interest and principal repayment of any loan arranged by Teck - which would be paid from future revenues from the mine. This provision would appear to be of significant future value.

It would also appear that anyone acquiring CUU would also benefit from this provision - unless there is something to the contrary in the JV agreement.

Teck are essentially funding mine development anyway. So why take the risk of a new 25% partner when they could simply acquire CUU?