That's the way I have always looked at it. Teck is backing in, not into a BFS or a Zone, but rather on everything included in Schedule A lands. If that includes 80% of the Mike zone then 80% of the Mike zone can be mined and proceeds shared according to the back-in percentage opted for.
Here's something connected -- The Area of Interest clause -- dealing with claims that are in whole or in part within the 2 KM perimeter to Schedule A lands. Teck fas FROR on their inclusion to the agreement. I asked Elmer whether we could effective keep those claims by putting up a huge and economically prohibitive price on it. Elmer seemed to pause for a moment on this question and then replied that "standard industry practices would call for those lands to be offered on pro-rata basis". I was a little surprised by that answer, not even sure what that means (I know what pro-rata means, but pro-rata to what?).
My question might actually be moot as the option agreement says Copper Fox cannot purchase claims that fall in whole or in part within the 2 M zone unless it first offers those interests for inclusion to the agreement. Section 11.1.
So it sounds like Teck gets up to 75% of everything on Schedule A lands and may have already secure a 75% back-in option on the Area of Interest.
Do others see it that way too?
