- Teck Resources Ltd. (TECK.A) and Agnico Eagle Mines Ltd. (AEM) have agreed to subscribe to a 50 per cent interest in Minas de San Nicolás, a copper-zinc development project
- Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás
- San Nicolás is the largest undeveloped volcanic-hosted massive sulphide deposit (VHMS) deposit in Mexico and is one of the largest undeveloped VHMS deposits globally
- Teck Resources Ltd. (TECK.A) was down 1.29 per cent, trading at C$44.42 per share at 10:30 am ET
Teck Resources and Agnico Eagle Mines have agreed to subscribe to a 50 per cent interest in the Minas de San Nicolás project.
Teck’s wholly-owned subsidiary owns the project, located in Zacatecas, Mexico.
As a result of the transaction, Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás.
Agnico Eagle will subscribe for US$580 million of the project’s shares, and its funding in the first two years is expected to be US$50 million.
San Nicolás is the largest undeveloped volcanic-hosted massive sulphide deposit (VHMS) deposit in Mexico and is one of the largest undeveloped VHMS deposits globally.
Teck estimated that as of December 31, 2021, San Nicolás contained 105.2 million tonnes of proven and probable mineral reserves at average grades of 1.12 per cent copper, 1.48 per cent zinc, 0.4 g/t gold and 22 g/t silver, or more than 2.0 per cent on a copper equivalent basis.
Teck’s President and CEO, Don Lindsay, explained that San Nicolás is a high-quality project located in a leading mining jurisdiction, with high grades, extremely competitive capital intensity, and first quartile costs.
“The opportunity to add the operating and development experience of Agnico Eagle should generate substantial benefits for the project, including for all stakeholders throughout the project life cycle.”
Agnico Eagle’s CEO, Ammar Al-Joundi, added that this is a unique opportunity to create a long-term partnership between two high-quality mining companies working together to de-risk and optimize a world-class VMS deposit in a premier mining jurisdiction.
“Agnico Eagle’s project development, permitting, and construction experience in Mexico, combined with Teck’s base metals expertise, operating excellence and marketing leadership, are complementary skillsets and will contribute to the timely and successful development and operation of San Nicolás.”
Teck is a diversified miner with coal, copper, zinc, and oil sands operations in Canada, the U.S., Chile, and Peru.
Agnico Eagle Mines Ltd. (AEM) was up 1.07 per cent, trading at C$54.90 per share at 10:30 am ET.
Teck Resources Ltd. (TECK.A) was down 1.29 per cent, trading at C$44.42 per share at 10:30 am ET.
