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%)

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Message: My ROFO proposition

Here's the latest. 

I can't think of a more simple way to structure it for now.  Typically, if the LT copper increases by $0,25 US, our valuation (25%) would increase between $60M US and $90M US, depending the option chosen.

I also adjusted the option payments to align with the current LT copper price of $3.50 US.  If the LT copper price goes up, so would the thresholds in that section.  Therefore, per example, if there's more upside to this project at production, we would currently get our share of it up to $3.50 US and to compensate for the additional wait, we also have some upside potential if copper goes above $3.50 US, depending the option chosen.

Finally, the discount rate was increased to 15%, which is very generous in my opinion.  If Teck would decline the offer, another major could see a nice opportunity to invest some dormant money in their cash account.

For me, this is a good way to share the risks & rewards.  Win-Win!

Always interested to hear all comments and discuss.

 

Options 1 2 3
LT copper price (lb) 3.50 3.50 3.50
SC EBITDA (100%)
First 5 Full Years ($M)
Ref. 2021 PEA
755 755 755
SC EBITDA (25%)
First 5 Full Years ($M)
189 189 189
EBITDA multiple used for valuation 4 5 6
Equivalent valuation ($M) for a 25%
interest in SC @sanction decision
755 944 1133
Estimated number of years left
before a sanction decision
2 2 2
Discount rate per year
pre-sanction decision 
15% 15% 15%
Valuation for 25% of SC
(2022 $M US)
571 714 856
Payment terms Shares and/or cash

Additional payment to Copper Fox, payable annually during the First 5 Full Years of production:

1 2 3
25% of the incremental EBITDA
above $755M US up to $3.50 US copper
12.5% of the incremental EBITDA
above $755M US up to $3.50 US copper
N/A
12.5% of the incremental EBITDA above $755M US over $3.50 US copper 6.25% of the incremental EBITDA
above $755M US over $3.50 US copper
N/A

+ the milestone payments, $40M CAD, payable per the SCJV agreement.

IMO.

MoneyK

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