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Tech and Agnico Eagle have announced an agreement for the San Nicolas Copper-Zinc Project in Zacatecas, Mexico.Canadian Business Journal

VANCOUVER, BC & TORONTO, September 16, 2022 (GLOBE NEWSWIRE) — Agnico Eagle Mines Limited (TSX and NYSE: AEM) (“Agnico Eagle”) and Teck Resources Limited (TSX: TECK.A and TECK.B) , NYSE) : TECK) (“Teck”) today announced that Agnico Eagle has agreed to assume a 50% interest in Minas de San Nicolás, SAPI de CV (“MSN”). Zinc Development Project (“Trading”) in Zacatecas, Mexico. As a result of this transaction, Teck and Agnico Eagle will become 50/50 joint venture partners in San Nicolás.

said Don Lindsay, President and CEO of Teck. “The opportunity to add Agnico Eagle’s operational and development experience should greatly benefit the project, including all stakeholders, throughout the project lifecycle.”

Ammar Al-Joundi, President and CEO of Agnico, said: eagle. “Agnico Eagle’s project development, permitting and construction experience in Mexico, combined with Tech’s base metals expertise, operational excellence and marketing leadership, are complementary skill sets and will provide San Nicolas with a timely and It will contribute to the successful development and operation.”

deal highlights

  • Agnico Eagle will receive a US$580 million stake in MSN, with Agnico Eagle owning a 50% interest in MSN. Subscription proceeds received from Agnico Eagle will be used by MSN to cover his initial $580 million post-closing expenses, with subsequent funds donated in proportion to each partner’s ownership percentage. Agnico Eagle’s contributions are made when research and development costs are incurred. There is no upfront payment from Agnico Eagle.
  • The US$580 million equity offering represents Agnico Eagle’s assumed acquisition cost of US$290 million for 50% of the San Nicolas project, plus Agnico Eagle’s own investment of 50% of the initial US$580 million project cost. means account.
  • Agnico Eagle’s first two year funding is expected to be approximately $50 million.
  • Forming a 50/50 joint venture between two Canadian-based global mining giants, each with a proven track record of successful joint ventures.
  • Governance arrangements with equal representation from Teck and Agnico Eagle to leverage and implement each shareholder’s skill set
  • Agnico Eagle will be considered a 50% shareholder of MSN for governance purposes upon closing of the transaction, which is expected in the first half of 2023.

Highlights of the San Nicolas Project

  • Located in Zacatecas, a major mining state in Mexico, it has great geological potential and many opportunities for polymetallics and precious metals. Additionally, Zacatecas has excellent access to infrastructure and a skilled workforce.
  • San Nicolás is the largest undeveloped volcanic-hosted massive sulfide deposit (“VHMS”) deposit in Mexico and one of the largest undeveloped VHMS deposits in the world. As of December 31, 2021, Teck will provide San Nicolas with 1.12% copper, 1.48% zinc, 0.4 g/t gold and 22 g/t silver or 100 million It is estimated to have proven and probable mineral reserves of 5.2 million tons. % copper equivalent basis
  • A feasibility study completed by Teck in March 2021 describes attractive economics and project parameters.
    • The project envisages modern truck and shovel strip mining, processing and flotation operations.
    • First production is scheduled for 2026, with an estimated mine life of 15 years, with significant potential for extended mine life and regional exploration benefits
    • The concentrate will produce 63,000 tonnes (ktpa) of copper and 147,000 tpa of zinc per year in the first five years of production.
    • 1.13% copper and 1.49% zinc mining head grade life expectancy
    • Average operating costs for C1 are US$0.16 per pound of copper and US$0.44 per pound of copper for the first five years of production (excluding by-products)
    • Estimated development capital cost of US$842 million
    • 2.6 year payback and 33% after-tax internal rate of return (IRR) based on US$3.50/lb copper and US$1.15/lb zinc
  • Teck and Agnico Eagle expect development capital costs to be in the range of $1 billion to $1.1 billion based on the current cost environment and the accuracy of their estimates. Assuming development capital costs in this range, with spot prices for copper of about US$3.57/lb and zinc of US$1.46/lb, the estimated payback period is 2.5 to 2.8 years with an after-tax IRR of 33% to Estimated at 30%.

San Nicolas Research Status
Detailed plans have been developed to complete feasibility studies, permits and community engagement, with initial work underway from January 2022. 2018-2021. A well-developed community engagement and investment program has provided strong support for development in Zacatecas more broadly from stakeholders close to the project.

A feasibility study is expected to be completed in early 2024, after which project approval is subject to receipt of permits.

About dealings
Agnico Eagle, through Agnico Eagle’s wholly-owned Mexican subsidiary, will subscribe for US$580 million in MSN shares, giving Agnico Eagle a 50% stake in MSN. Subscription proceeds received from Agnico Eagle will be used by MSN to cover his initial $580 million post-closing expenses, with subsequent funds donated in proportion to each partner’s ownership percentage. Agnico Eagle’s contributions are made when research and development costs are incurred. There is no upfront payment from Agnico Eagle. The US$580 million equity offering represents the first US$580 million project by Agnico Eagle in addition to the US$290 million assumed acquisition cost of his Agnico Eagle for his 50% of the San Nicolas project. It means paying his 50% of the cost to his own account.

Funding requirements beyond this initial subscription amount will be funded by Teck and Agnico Eagle in proportion to MSN’s equity holdings. Shareholder agreements include provisions typical of this type of transaction, as well as remedies for material breaches such as accelerated dilution and the forced sale of non-performing shareholders’ ownership. For governance reasons, Agnico Eagle will be considered his 50% shareholder in MSN, regardless of the number of shares issued to Agnico Eagle.

Completion of the transaction is expected in the first half of 2023, subject to customary and precedent conditions, including receipt of necessary regulatory approvals.

Additional Information on the San Nicolas Project
For more information on the San Nicolás project, see the supplemental information slides in the investor section of Teck’s website (https://www.teck.com/investors/events-&-presentations/presentations-webcasts/supplemental-information-) Please refer to. for investors).

About Tech
As one of Canada’s leading mining companies, Teck is committed to responsible mining and minerals development, with major business units focused on investments in copper, zinc, steelmaking coal and energy assets. The transition to a low-carbon society requires copper, zinc and high-quality iron-making coal. Headquartered in Vancouver, Canada, Tech’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and on the New York Stock Exchange under the symbol TECK. Learn more about Teck here www.teck.com or follow @TeckResources.

About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company producing precious metals in Canada, Australia, Finland and Mexico. These countries, as well as the United States and Colombia, also have pipelines of high-quality exploration and development projects. Agnico Eagle is the mining industry’s partner of choice and globally recognized for its leading environmental, social and governance practices. The company was founded in his 1957, has declared a cash dividend every year since 1983, and has consistently created value for its shareholders.

Teck Media Contact
Chris Stannell
public relations manager
604.699.4368
[email protected]

Tech Investor Contact:
Fraser Phillips
Senior Vice President, Investor Relations and Strategic Analysis
604.699.4621
[email protected]

Agnico Eagle investor contact information:
Jean-Marie Clouet
Corporate Director, Investor Relations
416.457.9464
[email protected]

Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995; securities law (Ontario). Forward-looking statements and information refer to the fact that a particular action, event or outcome “could,” “could,” “could,” “should,” “will,” or It can be identified by the statement “will”. Forward-looking statements in this news release include statements regarding the likelihood and timing of closing of the transaction. Expectations that the San Nicolas project will develop into production. Expected time of first production. Estimated mine life; expectations of significant mine life extension and potential for area exploration. Prospective Ownership of Teck and Agnico Eagle in Joint Venture. Projected production for the first five years of operation. Economics for all San Nicolas projects included in this news release, including head grade, average C1 operating cost, estimated development capital cost, payback period, and IRR. Expectations regarding feasibility study results, including estimated development capital costs, payback period, and IRR. A statement that the project has been derisked. Timing of project authorization decisions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors and the actual results, performance or achievements of Teck, Agnico Eagle or the joint venture may not be Expressed or implied future results, performance or achievements may differ materially. Forward-Looking Statements. Factors that could cause actual results to differ include changes in general economic conditions or commodity prices, development or construction issues, including unanticipated permits, delays in receipt of permits or other regulatory approvals. , or unexpected withdrawal or suspension of permission. Geological conditions or other factors affecting construction plans and budgets (supplier, transportation, logistics or labor issues, adverse weather or natural disasters, community unrest, access problems, factory and equipment failures, financial markets the accuracy of our mineral estimates) (including those relating to size, grade and recoverability) and the geological, operating and pricing assumptions on which they are based, and any other circumstances that prevent the completion of a transaction (including (including failure to meet any conditions of completion, including receipt of regulatory approval) as required by Teck or Agnico Eagle in a failed financing agreement. Economic forecasts for the San Nicolas Project are presented on a 100% basis and assume US$3.50/lb copper, US$1.15/oz zinc, US$1,550/oz gold and US$20 silver, unless otherwise stated.

Teck and Agnico Eagle note that the preceding list of key factors and assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or implied by these forward-looking statements. Some of these risks are described in more detail in Teck and/or Agnico Eagle’s Annual Information Forms and their respective quarterly reports filed with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. . Neither Teck nor Agnico Eagle undertakes any obligation to revise or update these forward-looking statements after the date of this news release, except as may be required by applicable securities laws or unanticipated events in the future. shall not be obligated to amend it to reflect the occurrence of

Tech and Agnico Eagle have announced an agreement for the San Nicolas Copper-Zinc Project in Zacatecas, Mexico.Canadian Business Journal
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Tech and Agnico Eagle have announced an agreement for the San Nicolas Copper-Zinc Project in Zacatecas, Mexico.Canadian Business Journal

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