No. CUU earned 100% of the whole enchilada by producing a positive BFS. Teck was supposed to back in by paying for their share. They didn't. Under the contract that was drawn up by Teck and that we all thought was valid, Teck had to earn their way back in. They didn't. They gave CUU 24 million for 75% of the project with no guarantee of going forward or at least, none that we know about... The port, the NTL and all the land claims that we were all drooling over are gone along with most of the 24 mil. Kind of like the Liard Shares....
A lot of what you are saying here just isn't true.
In the Salazar Agreement there was "no guarantee of moving forward." It specifically states that the decision to put the project into production would be Teck's entirely.
We still have the JV which uses the port and lands and NTL. Having them alone would be useless unless Teck puts SC into production.
We have 25% of the benefit from the Liard shares, which are useless unless Teck moves into production. It's not like we could have sold them under the old agreement because Teck had rights to earn them back.
Sure Teck had to earn-back their share under Salazar. They had to pay 4X our expenditures and at the end of that 25% of the earn-back expenditures would be accredited to Copper Fox. We wouldn't actually get any money, just the amount of money we spent would be equalled by Teck on a pro-rata basis.
Teck had to pay $250K per year at least and there was no limit on how much time they spent to earn-back. They were not compelled to put the project into production.
We would have been sitting here for the past year without any money, with 413 million shares out and still without any idea what Teck was planning on doing.
Under the old Agreement Teck would have spent $80 million on our behalf working on SC without any guarantee of production, or they could have quit after spending very little and walked away from the project. In the new JV Teck has committed to giving us $60 million cash in stages, plus the $120 million free expenditures that don't affect our share.
In both deals the only way we are going to make any serious money is if they put this project into production.
