Teck Resources announced that its partner in the Galore Creek joint venture project, NOVAGOLD Resources Inc. (NOVAGOLD), has entered into an agreement to sell its 50% project interest to Newmont Mining Corporation (Newmont) for US$275 million in staged and contingent payments.
Teck and Newmont have agreed to a work plan at Galore Creek with the objective of completing an updated prefeasibility study over the next three to four years to improve overall project understanding and economics. Teck will invest approximately CAN$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% interest in the Galore Creek project since May 2007.
Galore Creek is a large tonnage, copper-gold-silver resource located in northwestern British Columbia, approximately 160 km northwest of Stewart (British Columbia). It is managed by the Galore Creek Mining Corporation (GCMC), a joint venture between Teck and Newmont. The Galore Creek project is part of Project Satellite, an initiative focused on surfacing value from Teck’s substantial base metal assets located in low risk stable jurisdictions.