Teck Resources, Copper Fox Enter into JV for Schaft Creek

Teck Resources Limited (TSX: TCK.A ,TCK.B, NYSE: TCK) announced that they have entered into a JV agreement with Copper Fox Metals Inc. for the Schaft Creek property in northern B.C.

As quoted in the press release:

Under the agreement, Teck will make an initial $20 million payment to Copper Fox and has committed to make two additional $20 million payments, the first following a decision to bring the property into production and the second following the completion of mine construction. Teck has also agreed to fund the first $60 million of costs of the joint venture prior to a production decision. If costs exceed $60 million, Teck will fund Copper Fox’s 25% portion of additional costs. Any additional Teck funding on Copper Fox’s behalf will first proportionately reduce any milestone payments owing, and thereafter will be made by way of loans to Copper Fox.

To view the whole press release, click here.