Some people are asking me to clarify the JV agreement. It does indeed say Teck has to form a Definitive Option Joint Venture with Copper Fox. The next step is to work to form a Joint venture company. What this means is Teck does have to declare it's intentions! So they put all the terms and clauses on paper, divide up the duties and start filing the papers for a new company. Would they have to declare the option? No, they could include all the options in the wording but that would be very difficult legally and a complete waste of time.
What is more practical is the straight forward declaration of intent and to get busy on the paper work. Sure we'd like to be bought out but consider the 6.6% royalty and the finance under the 75% option. Ya, I know we'd all like our money now so we can speculate on Arizona. So in reality Teck should just take the cherry and run without us. That 6.6% royalty resulting from the transfer of the shares minus the earn back portion plus the ones we bought is worth $85 million a year. Talk about exploration funding!
I know the JV appears at odds with the 120 clause. But it isn't. That just gives them an additional 60 days to give final consideration to the agreement. It closes the JV agreement by giving a final time limit to the formation of the JV company.
A last word on the contract. Should a change be required I'm sure we'd be happy to negotiate it as long as it was for the good of the shareholders.
It should be noted that the BFS clause says it has to be based off no more than 90% consumption of the proven and probable portions of the deposit. This was a contractual requirement!
It should also be noted that the contract requires a study based on 12 year at a discount of 12% and a production rate of 25,000 tonnes per annum or 15 years, 8% at 50,000t/p/y. These are tough requirements. The BFS has met those requirements. This is why we laugh at the bashers. Speaking of them, you should see the angry messages I'm getting because the were stupid enough to forewarn us. We rallied some buying power and stole their shares lol.
Also worth reading is Vette350's update on the BFS info. http://www.vette350.com/2012/12/copper-fox-metals-feasibility-measured.html#comment-form