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Gold/Mining/Energy : Copper Fox -- Ignore unavailable to you. Want to Upgrade?

To: louel who wrote (9452)	4/8/2015 6:16:37 PM
From: brundall	Read Replies (1) \| Respond to of 10654

If I misunderstand this please direct me to where it clarifies or states otherwise The $15 million I allocated to Copper Fox is 25% of the 'up to' $60 million that Teck could spend on pre construction costs. Our split of the JV is 75/25 so we get up to $15 million in additional value sunk into the property if they spend the full amount. We don't get that money directly but I allocated it as if it was adding that much value to the property. $24 million from the upfront payout + $15 million for our share of the property improvements = $39 million total that Teck could have shelled out for their 75% of Schaft Creek. Those are the only payments that Teck is obligated contractually to pay. That's the valuation that matters, if 75% of Schaft Creek is only worth $39 million to our management, then our remaining 25% portion has been valued at $9.75 million or 2.5 cents per share. If Teck decides in 2016 that it has seen enough and pulls the plug (unlikely imo) they don't owe us another dime. They do not have to spend the full $60 million in pre production expenses.