Elmer wants his investors to relax regarding the recent developments. The below is his response.
Elmer's Response
I do not think Teck would develop Schaft Creek alone. More than likely they would complete a similar transaction that they did with their Antimina project in Peru, Teck sold some of their interest in the project to other mining companies whereby the other companies put up the financing to earn their interest in the project.
In line with this; keep in mind that CIC (Chinese State company) is the largest shareholder in Teck and Teck announced an arrangement with Sumitomo not that long ago that they have combined to seek large copper-molybdenum projects in North America and Australia for development. I believe (but could be wrong) that it is only a matter of time until Teck or someone makes an offer for Copper Fox
Alternatively pursuant to the Joint Venture agreement, Copper Fox can put an offer to teck whereby Teck has 60 days to accept or reject the offer. After that Copper Fox can sell the interest in Schaft Creek to another company for a better price than offered to Teck. The issue will be when is the best time to make this move, certainly not before the results of the 2013 program are known.
The 2013 program consisted of exploration to increase the size of the resource and get a better handle on the exploration potential of the project and to obtain additional geotechnical information related to pit slope stability studies (advanced engineering work)
Hope this helps
Regards
Elmer
