Friday, November 23, 2012

Teck has the BFS!? Copper Fox Metals

So we hear that
Teck does have the BFS. I took the info last week to mean they got it then but another sources says nope, this Monday. I don't see that as mattering much. The main point is they do have it. Now, how long can they hang onto it before we get to see it? 10 days? A month?

There's nothing in the contract that says how long they can hold off publishing it. We only have the general guidelines for disclosure and under the circumstances it could be deemed that Teck is important enough that we have to wait until they are done with it. Does this mean their clock has started? Yes or at least it should. The contract specifies that we deliver one not when it's published. So call it Monday the 19th. In theory and in keeping per Elmer Teck gets 1 month. Beyond that Teck would be pushing things. So a Teck notice would come Dec 20. If an offer were made CUU would have 10 days to think about it and make it public. So by the end of the year they would submit it to a fairness review. This could be quick or take another 10 days (up to a month).

From there it should go to a vote. The vote would take a month if all votes were to be counted. Obviously, Ernesto has enough votes to make the decision on the spot but I don't think Elmer and co would do that.

So Teck takes a month to secretly examine the BFS. Do we get to see it? How about some sp appreciation/speculation. Are we to be deprived for another month? I'm pretty sure it would be to our benefit to let the market  in on it. There's nothing in the contract that says Teck has the right to whatever time they want to do an internal review of the BFS.

It won't be much of an Xmass if news comes on the 20th of Dec. The market won't have much of a chance to recognize the value. There's also the chance they just take 40% or less and we have to go to the market then. In that case we are starting the buildup ourselves and could be looking at another year to fill the blanks in. Granted that this scenario is hard to imagine those were the words of CUU in a past interview. I've heard things will be different (from the company) and I did ask them about that old interview. Since then they became more confident in a total take out.


  1. Just a thought, perhaps CUU got the BFS Monday. So why have a big meeting to black out the team previously?... I can't see the companies involved telling CUU a specific date that the BFS would be ready simply because they never have been able to hit the barn door with a grenade. I think Black out was exercised because they knew they would have it in hand the next business day. That must mean the reviews were already completed. That also means they do have it and would be required to hand it over to Teck.

  2. Another thought. We've been informally told the reviews are done. Teck must be in their grace period now. Elmer has said over and over about how we must deliver a perfect BFS so that there would be no objection to it in any way shape or form that would result in a delay. From Teck's point of view you get what you paid for. So it has to be flawless if you're going to pay for it. It would be perfectly fair game for CUU to allow them a grace period of reasonable proportions but respecting us the investor. 30 days would not be unreasonable but I suspect it is closer than we think.