Copper Fox Metals Inc.

Welcome To the Copper Fox Metals Inc. HUB On AGORACOM Copper Fox Metals is a Canadian-based resource company focused on developing the world-class Schaft Creek Project in northwestern British Columbia.

over 11 years ago

in response to Brad129a's message

Teck's back-in obligation (for 75% interest) adjusts CUU valuation to add ~$80M in value to CUU on top of their ~24% interest in SC.

Since Teck pays all of the first ~$320M (i.e. $80x4) of the SC's initial capex it saves CUU ~$80M. You also don't have to worry about discounting since this capex savings comes in the initial periods. Effectively the back-in obligation gives CUU value for their past expenditures.

I have included the back-in rights in my back of the envelope valuation here:

http://agoracom.com/ir/CopperFoxMetals/forums/discussion/topics/558579-inferred-valuation/?message_id=1757854#message_1757854