Canadian major Teck Resources is entering into Colombian exploration activities through a joint venture with Colombian Mines on its Yarumalito gold porphyry project.
“This is the first such joint venture in Colombia where a major is earning into a joint venture with a junior and marks a distinct turn for the Colombian exploration scene with some important new blood in the form of a major Canadian company,” said Robert Carrington, president and CEO, Colombian Mines. “Colombian Mines will benefit substantially from Teck’s technical expertise and substantial financial strength which will support and compliment Colombian Mines extensive in-country experience.”
Teck and Colombian Mines have entered into a $15.5 million agreement, where Teck will make a $1,000,110 “good faith” strategic investment in Colombian Mines by means of a non-brokered private placement. Teck will then have the right, until May 31, 2012, to make further private placements in the company, and Teck’s local subsidiary (TLS) will simultaneously enter into an agreement to earn a joint venture interest in the Yarumalito project whereby TLS could earn up to a 70% joint venture interest by spending not less than $10 million on exploration and making cash payments and private placements totaling $5.5 million to fully vest as to 70%. Colombian Mines will remain manager of the project during the initial earn in phase through its wholly-owned Colombian subsidiary Corporacion Minera de Colombia and will receive a management fee equal to 10% of all exploration expenditures.