Teck Resources has entered into a definitive agreement to acquire the remaining interests in AQM Copper not already owned by Teck and its affiliates in a transaction valued at $C25 million. AQM’s principal asset is a 30% indirect interest in the Zafranal copper-gold project located in southern Peru, approximately 70 kilometers north of Arequipa. Teck holds a 50% indirect interest in the Zafranal project.
Closing of the transaction is subject to customary conditions, including approval by holders of AQM shares, options and deferred share units, and court and regulatory approvals. The transaction is expected to close in January.
The Zafranal copper-gold project is owned by Compañia Minera Zafranal S.A.C. (CMZ), a joint venture company. Teck holds a 50% direct interest in CMZ and the remaining 50% direct interest is held by Minera AQM Copper Peru S.A.C. (MAQM), a Peruvian company. AQM holds a 60% direct interest in MAQM and Mitsubishi Materials Corp. (MMC) holds the remaining 40% interest in MAQM.
AQM released the results of a prefeasibility report on the Zafranal copper-gold. On completion of the transaction, Teck will hold an 80% interest in CMZ and MMC will hold the remaining 20% interest with an option to increase its interest up to 30%. Teck and MMC have agreed to restructure ownership of the Zafranal copper-gold project following the closing of the arrangement so that each party will hold its interest in CMZ directly or through wholly owned subsidiaries.