These aren't 'costs' as defined by the JV. The JV does not oblige Teck to pay for the Liard shares.
Once more, from the JV:
During the term of the Joint Venture formed hereunder, if a Party or any of its Affiliate acquires legal or beneficial interest in any Liard Shares, other than pursuant to a distribution referred to in §6.4(c), it will offer to have that legal or beneficial interest included in this Agreement. The other Party shall have 30 days to elect whether to accept that offer and, where appropriate, pay its share of the costs of acquisition; failing which election and payment, the acquiring Party may retain the interest in the Liard Shares so acquired free of the terms of this Agreement.
The agreement specifically states that we would be obliged to pay our share. Instead Teck has allowed that purchase to fall under the pre-production costs, the first $60 million, that we do not have to pay back. This is not how the JV is written.
From the NR:
- Copper Fox has accepted its right to have the Liard shares contributed to SCJV, and Copper Fox's share of the purchase price will be deemed to be included in the Pre-Production Costs as that term is defined in the Schaft Creek Joint Venture Agreement,
