Let's not forget that Teck can own 75% of Schaft Creek for about $400 million (i.e. 4 x CUU costs to date) which will be spent on mine development - and, as 75% owner, Teck would spend $300 million of this anyway!!

The ROV Case in the BFS projects 100% payback in 5.7 years of mining operations. With a mine life of 20+ years, this means some 14.3 years of profit i.e. revenue minus variable operating costs as all capital costs would have been repaid in first 5.7 years.

Seems to me that converting their Option into 75% ownership should be a "no brainer" for Teck.

If so, the negotiations relate to 2 main areas:

1. The value of CUU's 25% remaining interest, and

2. The value of Schaft Creek area lands that are not covered by the Teck Option.

CUU has stated that it wants to sell 100% of its Schaft Creek assets. By converting its Option, Teck will have created substantial market value for these assets. So, Teck's decision comes down to: how much are we willing to pay to have 100% control over our future mining operations in this area?

If CUU does not like the answer, they can approach other deep pocket mining companies (who have already, in all likelihood, spoken with them) and sell to the highest bidder an asset that is:

A. Partially owned by Teck - and 100% financed by them; and

B. would be 100% owned by them because it is not part of the Teck Option.

Seems to me that CUU is in the driver's seat - they simply have to deliver the BFS to Teck and get the clock running!!

All this means is that CUU's current share price is substantially undervalued - by how much? Teck and, if necessary, other mining companies, will tell is in the next few weeks.