Teck is a diversified resource company committed to responsible mining and mineral development. — Photo courtesy Teck Teck Resources Limited (“Teck”
Teck is a diversified resource company committed to responsible mining and mineral development. — Photo courtesy Teck
Teck Resources Limited (“Teck”) (TSX:TECK.A) (TSX:TECK.B) (NYSE:TECK) announced today that it has acquired an additional 13.5% interest in Compañía Minera Teck Quebrada Blanca S.A. (“QBSA”) through the purchase of Inversiones Mineras S.A.(“IMSA”), a private Chilean company. The acquisition brings Teck’s interest in QBSA to 90%. ENAMI, a Chilean State agency, holds a 10% preference share interest in QBSA, which does not require ENAMI to fund capital spending.
QBSA’s principal asset is the Quebrada Blanca Phase 2 (“QB2”) copper development project located in Northern Chile. QB2 is in the final stages of permitting, and a project sanction decision is not expected before the second half of 2018.
“This transaction simplifies the ownership and capital structure for QB2, giving Teck additional flexibility with respect to financing options for the project,” said Don Lindsay, President and CEO. “QB2 is a high quality, long-life asset in a low risk jurisdiction that will operate through multiple price cycles at a low-cost, substantially increase Teck’s copper production, and generate significant value.”
IMSA holds 8.5% of the ordinary shares of QBSA and a 5% preferred share interest. The purchase price consists of US$52.5 million paid in cash on closing, an additional payment of US$60 million payable on the issuance of the major approval of the social and environmental impact assessment for the QB2 project and the expiry of certain appeal rights, and a further US$50 million payable within 30 days of the commencement of commercial production at QB2. Additional amounts may become payable to the extent that average copper prices exceed US$3.15 per pound in each of the first three years following the commencement of commercial production, up to a cumulative maximum of US$100 million if commencement of commercial production occurs prior to January 21, 2024, or up to a lesser maximum amount in certain circumstances thereafter.
Forward-looking statements apply.
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
