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Arena Minerals Enters Option and Joint Venture Agreement With Teck Resources Subsidiary
Oct. 23, 2015 11:42AM PST
Base Metals Investing Arena Minerals (TSXV:AN) reported that its Chilean subsidiary has signed an option and joint venture agreement with Teck Resources Chile Limitada, a subsidiary of Teck Resources (TSX:TCK.B). Arena will grant Teck the options to acquire up to a 60 percent interest in its Solitario and Paciencia North prospects that comprise part of the company’s Atacama copper property in Chile.
Arena Minerals (TSXV:AN) reported that its Chilean subsidiary has signed an option and joint venture agreement with Teck Resources Chile Limitada, a subsidiary of Teck Resources (TSX:TCK.B). Arena will grant Teck the options to acquire up to a 60 percent interest in its Solitario and Paciencia North prospects that comprise part of the company’s Atacama copper property in Chile.
As quoted in the press release:
In order to exercise the options and acquire up to a 60% interest in the Property, Teck Chile will be required to spend an aggregate maximum of US$19.5 million in two stages over a six-year period. In addition, during the first option, Teck will be required to complete two equity financings in Arena at a premium to the market for an aggregate amount of Cdn$1.5 million (Cdn$1 million on signing and Cdn$0.5 million on or before July 26, 2016), make a one-time cash payment of US$450,000 (expected to be July 26, 2017) as well as an annual recurring payment of US$100,000.
As part of the transaction and subject to Exchange approval, Teck will subscribe for 3,703,703 common shares of Arena (the “Shares”) pursuant to a private placement financing at a price of $0.27 per Share, for gross proceeds of Cdn$1,000,000 (the “Offering”). The closing date of the Offering is scheduled to be on or about November 15, 2015.
Arena president and CEO, Will Randall, said:
We are pleased to be partnering with Teck in what is now our third joint venture agreement this year, and welcome Teck as a strategic shareholder. Bringing Teck in to the mix of partners is ideal for Arena and its shareholders, given the company’s international reputation, size and experience. Teck has been operating successfully in Chile for decades and their wealth of knowledge will no doubt add tremendous value to our ongoing exploration of the Atacama Property. Combined with our other two joint venture agreements (please see press releases dated February 23, 2015 and July 21, 2015), we now have a combined exploration commitment in excess of $60 million for the Atacama property.