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Strategies & Market Trends : Winter in the Great White North
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To: teevee who wrote (5424)12/31/2003 12:39:42 PM
From: E. Charters  Read Replies (2) of 8273
 
There are no back ins in any Wildcat deal. I won't do them. I do not explore for other people to mine at present.

We are earning into other deals with a straight percentage or smelter return. Smelter returns are capped.

As you said, most deals are not written in stone.

Also our deals are very cheap in comparison to resource potential which is very advanced. They also have few permitting hassles.

A turn key production deal which has a fixed earn in rate and low ten cent on the dollar costs of high grade ore, cannot be compared to a deal where the earn back is hazy and the deal is not certain after a point. Experience teaches us that the people who write these deals with the big bucks will not usually let the property go if it proves up.

Some majors deal properties out, but it depends on the deal from the get go and its history. We are taking a former major's deal that was dealt out again, but it was dropped 10 year ago. No earn-back in it.

If they deal it outright, then fine, but there has to be a reason for the earn-back, and we have seen all to frequently that they excercise the earn-back all too soon.

If it is major resource, and the deal is generously carried it could be different. (PFN)

EC<:-}
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