The presentation on CUU's website states that $85 million had been spent by Dec. 31, 2012 - do not know whether all of this would be eligible for inclusion in Teck's requirement.
Under JV agreement, Teck pays $60 million directly to CUU. Payments to be made in 3 defined instalments. In addition, Teck pays for first $60 million of development costs which, based on its 25% ownership, is worth $15 million to CUU.
Therefore, CUU would receive $75 million through JV agreement compared to up to $85 million under prior agreement.
While CUU appears to be receiving less money, it is actually receiving much more value.
Why?
Because under the prior agreement, all $85 million would have been spent on further exploration on Schaft Creek - CUU would not deposit any of this cash in its bank account.
Under the JV agreement, CUU should now have deposited $20 million in its bank account with the potential to receive a further $40 million in cash.
As Teck is now responsible for financing all future Schaft Creek costs, CUU now has the cash it needs to explore the potential of its land in Arizona.
