Teck Resources Closes Acquisition with Sumitomo

Teck Resources (TSX:TECK.A and TECK.B,NYSE:TECK) has closed the acquisition of Compañia Minera Teck Quebrada Blanca S.A. (QBSA) by Sumitomo Metal Mining (TSE:8053) (SMM) and Sumitomo Corporation (SC).

SMM and SC now own a 30-percent interest in Compañia Minera Teck Quebrada Blanca S.A., the company that owns the Quebrada Blanca Phase 2 copper project.

As stated in the press release:

Following closing of the transaction, Teck holds a 60 percent indirect interest in QBSA and Empresa Nacional de Minería continues to hold a 10 percent carried interest. SMM and SC are expected to contribute approximately US$1.3 billion to the QB2 project during 2019. Teck’s anticipated share of 2019 QB2 capital spending is approximately US$175 million, which has been expended in the first quarter. Assuming closing during 2019 under the US$2.5 billion project financing facility expected to be signed in the second quarter, further cash contributions from Teck to QB2 capital costs are not expected to be required until late 2020.

Click here to read the full press release from Teck Resources.