Agnico-Eagle and Teck Form Mining Joint Venture in Mexico
By Adriano Marchese
Agnico-Eagle Mines Ltd. announced on Friday that it would buy a 50% stake in a Mexican mine owned by a subsidiary of Teck Resources Ltd. for $580 million in stock, creating a new joint venture.
The Canadian mining company said it is taking a 50% stake in Minas de San Nicolas, SAPI de CV, the Teck subsidiary that owns the San Nicolas copper-zinc development project in Zacatecas.
Agnico Eagle says the project has significant geological potential as well as numerous polymetallic and precious metals opportunities, estimating that San Nicolas contains approximately 105.2 million tonnes of proven reserves and likely at an average grade of 1.12% copper. , 1.48% zinc, 0.4 grams per tonne of gold and 22 grams per tonne of silver. On a copper equivalent basis, that’s more than 2%, he said.
The underwriting includes a $290 million acquisition cost to Agnico Eagle for the project interest, plus its contribution of half of the project’s first $580 million for its own account.
For the first two years, Agnico Eagle expects its funding to be approximately $50 million, and first production is expected in 2026 with a mine life of 15 years.
Write to Adriano Marchese at [email protected]
(END) Dow Jones Newswire