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Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) announced that along with a subsidiary, it has entered into a long-term streaming agreement with a subsidiary of Franco-Nevada Corp. (TSX:FNV,NYSE:FNV).
Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) announced that along with a subsidiary, it has entered into a long-term streaming agreement with a subsidiary of Franco-Nevada Corp. (TSX:FNV,NYSE:FNV).
The agreement is regarding production from the Antamina mine; Teck holds a 22.5-percent stake in the company that owns and operates that mine.
As quoted in the press release:
Franco-Nevada will make an upfront payment of US$610 million to Teck and will pay 5% of the spot price at the time of delivery for each ounce of silver delivered under the agreement. Teck will deliver silver to Franco-Nevada equivalent to 22.5% of payable silver sold by CMA, using a silver payability factor of 90%. After 86 million ounces of silver have been delivered under the agreement, the stream will be reduced by one third. Closing of the transaction is subject to completion of certain corporate matters and customary conditions and is expected to take place in the first half of October.
CMA is not a party to the agreement with Franco Nevada and Teck’s rights as a shareholder of CMA are unaffected by the agreement.
Click here to read the full Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) press release.