Agreement below, important parts that are related to our scenario in bold:
______________________________________________________________________
Salazar may prepare a report without a wńtten agreement with Teck Cominco as contemplatèd in that studies a project of any size selected by Salazar but no smaller than that set out in (i) but in this case Salazar must then, at the same time, study a project ofthe size set out in (ii). The report will be considered to be positive if it generates a positive NPV in either of following two cases:
(i) firstly, the report will be considered positive if it indicates that production from the Property would, on a project basis, generate a NPV of at least $1.00 using a discount rate no less than 12% and assuming a mine life of no less than 12 years and copper rnetal production of at least 25,000 tonnes per annum;
(ii) secondly, the report will be considered positive if it indicates that production from the Property would, on a project basis, generate a NPV of at least $1.00 using a discount rate of 8% assuming a mine life of no less than 15 years andvcopper metal production of at least 50,000 tonnes per annum;
Where “NPV” means the net present value of the Projected Net Cash Flow, »as defined in Schedùle “E”, discounted to the date of the Positive Bankable Feasibility Study on a constant dollar basis assuming the consumption of no more than 90% of the proven plus probable reserves. lf the report is positive under §5.5(b)(i), Teck Cominco may give notice to Salazar, within 30 days of receipt of the Feasibility Notice at which production rate the repon shall be considered a Positive Bankable Feasibility Study so long as the project selected has a positive NPV. If the report is positive underl §5.5(b)(i) but is not positive under §5.5(b)(ii), the report shall be considered to be a Positive Bankable FeasibilityI Study based on the size of project >studied under §5.5(b)(i). If the report is positive under §5.5(b)(ii) but not under §5.5(b)(i), Teck Cominco may nevertheless elect, in its sole discretion, to deem the report to be a Positive Bankable Feasibility Study. lf Teck Cominco does not give any notice as aforesaid, then any report that satisfies §5.5(b)(ii) will be considered a Positive Bankable Feasibility Study.
______________________________________________________________
Based on this, we should be using 5.5 (b) (ii). If that's the case, we shouldn't be using the 30 days as Teck hasn't given any sort of notice (though I guess it's early? I feel like they would have said something in the last 45 days from when we first released the report). I'm not a lawyer, nor do I have any law training but that seems pretty straight forward to me, I spent an hour reading everyone's post and the back and forth trying to figure it out. This shouldn't be required - management/IR should have made this very clear to us and we shouldn't be sitting here trying to figure out the agreement. They don't even return E-mails in a timely fashion (if at all).
