Teck acquires Australian zinc project interest

Teck Resources Limited [TCK.A, TCK.B-TSX; TCK-NYSE] reported that a wholly-owned├é subsidiary has exercised a right of first refusal to acquire the 49% interest held by Rox├é Resources Limited [TXL-ASX] in the Teena/Reward zinc project, which is already subject to├é Teck’s right to earn an additional 19% interest.

The consideration will consist of AUD $10.6 million in cash (or AUD $8.0 million in cash and AUD $3.6 million in freely trading securities) payable on closing, a three-year AUD $5.25 million interest bearing promissory note, and a further AUD $3.75 million in cash payable on the earlier of six years from the closing date or completion of a bankable feasibility study for the project.

Closing of the transaction is subject to customary conditions, including definitive documentation. On closing, Teck will hold a 100% interest in the Teena project.

Teena is located 8 km west of Glencore's MacArthur River Mine in the Northern├é Territory of Australia, within one of the├é world's premier zinc provinces. Teck’s subsidiary├é optioned the property from Rox in 2011 and discovered Teena in 2013.