trading halt, page-8

Stefoid

Personally I do not want Teck to exercise their option to earn an interest in this environment of booming metal prices.

The deposit will be very profitable, though probably just below Teck's requirements in my opinion.

Having 100% of the project will be a massive boost for CSE. The CAPEX required will not be that large (comparatively to similar sized developments) and will not need to be duplicated entirely for the various projects it will process (Chloes, Jacksons, einsleigh, Kaiser Bill etc etc - though Kaiser Bill will probably require higher metal prices to be feasible).

Take a look at Jabiru and its SP performance when it got its high grade, but small, deposit underway and the additional projects that cashflow allowed it to acquired. That was despite a significant CAPEX and raising.

CSE would benefit similarly from having sole ownership. Yes there would be a lull in SP pre production, ie in development phase, but once prod up and running historically, such companies have gone on to many multiple SP gains.

If they only had partial interest, then yes no capital raising for CAPEX but the SP appreciation will be much smaller (if Teck didn't just take them over).

EG: JML, OXR, IGO, SMY, MCR just some examples of the benefits of full ownership.

Cdchi1