Does the bolded section mean that Teck could basically skirt paying us anything, and continue to do 10/15/20 million a year enhancments in lieu of giving us cash payments?  Say 15 Million a year for the next 10 years?... 

Under the SCJV agreement, Teck is required to make three cash milestone payments to the Company: (i)

$20 million upon entering into the agreement (received), (ii) $20 million upon a production decision

approving mine construction, and (iii) $20 million upon completion of construction of mine facilities.

The SCJV agreement provides that Teck and the Company are each responsible for their pro-rata share of

project costs in accordance with their interests, except that Teck is solely responsible for the first $60

million in pre-production costs. If pre-production costs exceed $60 million, the Company’s pro rata share

of such costs will be set off against the two remaining cash milestone payments (totaling $40 million)

payable by Teck to the Company. If pre-production costs exhaust the two cash milestone payments, Teck

will further assist the Company by providing loans, as necessary, without dilution to the Company’s 25%

joint venture interest.

By way of example, assuming the existing 75% interest held by Teck and the 25% interest held by the

Company remain unchanged, pre-production expenditures on the Schaft Creek Project would have to

exceed a cumulative total of $220 million to eliminate the two cash milestone payments payable to the

Company through set-off, after which Teck would be obligated to fund the Company’s pro-rata share of

additional pre-production costs by way of loan to the Company (at prime plus 2%).