Teck Resources has announced that its partner in the Galore Creek project has entered into an agreement to sell its 50 percent project interest to Newmont Mining for US$275 million.
Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK) announced today (July 26) that its partner in the Galore Creek joint venture project, NOVAGOLD Resources (TSX:NG) has entered into an agreement to sell its 50 percent project interest to Newmont Mining Corporation (NYSE:NEM) for US$275 million in staged and contingent payments.
As quoted in the press release:
Teck and Newmont have agreed to a work plan at Galore Creek with the objective of completing an updated pre-feasibility study over the next three-to-four years to improve overall project understanding and economics. Teck will invest approximately C$12-20 million (US$10-15 million) annually to complete this work.
Teck and Newmont have also agreed to certain modifications to the existing shareholders agreement. Teck has held a 50 percent interest in the Galore Creek project since May 2007.
As described by Teck., Galore Creek is a large tonnage, copper-gold-silver resource located in northwestern British Columbia, approximately 160 kilometres northwest of Stewart. It is managed by the Galore Creek Mining Corporation (GCMC), a joint venture between Teck and Newmont.