Teck sale of interest in San Nicolás Copper-Zinc Project

On April 6, 2023, Teck Resources Limited (“Teck”) and Agnico Eagle Mines Limited (“Agnico Eagle”) announced the closing of a previously announced joint venture transaction to advance the San Nicolás copper-zinc development project.

Pursuant to the joint venture transaction, Teck and Agnico Eagle entered into a joint venture shareholders agreement whereby Agnico Eagle, through a wholly-owned Mexican subsidiary, agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. (“MSN”) for US$580 million, to be contributed as study and development costs are incurred by MSN. The US$580 million share subscription implies a notional US$290 million acquisition cost to Agnico Eagle for its 50% interest in the project, plus its contribution of 50% of the first US$580 million of project costs for its own account.

For governance purposes, Agnico Eagle is deemed to be a 50% shareholder of MSN as of the closing of the transaction, regardless of the number of shares issued to Agnico Eagle or its subsidiary.

Further information can be found on Globe Newswire’s website.

Located in central Mexico, approximately 60 km southeast of the city of Zacatecas, San Nicolás is the largest undeveloped volcanic-hosted massive sulfide deposit ("VHMS") in Mexico and is one of the largest undeveloped VHMS deposits globally.

Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland, and Mexico.

Teck is one of Canada's leading mining companies, with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets.