Teck Resources Ltd. announced that a wholly owned subsidiary has exercised a right of first refusal to acquire the 49% interest held by Rox Resources Ltd. in the Teena/Reward zinc project, which is already subject to 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 Territory of Australia within one of the world’s premier zinc provinces. Teck’s subsidiary optioned the property from Rox in 2011 and discovered Teena in 2013.