Teck Resources Limited

Teck Resources Limited

January 25, 2010 14:10 ET

Teck Announces Closing of Andacollo Gold Royalty Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2010) - Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced today that the previously-announced sale of a gold production interest from the Andacollo mine to Royal Gold, Inc. (NASDAQ: RGLD; TSX: RGL) has closed. Compania Minera Teck Carmen de Andacollo ("CdA") has received US$218 million in cash and approximately 1.2 million common shares of Royal Gold in connection with the sale. Teck owns a 90% interest in Andacollo. A Chilean state-owned entity dedicated to the promotion and development of small and medium-sized mining in Chile, holds the remaining 10% interest in Andacollo.

The Andacollo mine is located 350 kilometres north of Santiago. The Andacollo hypogene project is currently in the commissioning phase. CdA has resolved issues associated with its process water supply, and is developing a further water resource and associated infrastructure to supply water to operations after 2011. Ore has been introduced to the mill and shipment of copper concentrate is expected to commence in April of this year. Full commercial production is expected to be reached in the first half of 2010.

Teck intends to apply its share of the net after-tax cash proceeds from the transaction to debt reduction.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information include statements regarding the resolution of water supply issues and Teck's expectations regarding first concentrate shipment and commercial production from the Andacollo mine. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Factors that may cause actual results to vary include, but are not limited to, operational mining, commissioning and processing risks, challenges to regulatory actions, and changes in regulations. Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission.

About Teck

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Further information about Teck can be found at www.teck.com.

Contact Information

  • Teck Resources Limited
    Greg Waller
    Vice President, Investor Relations & Strategic Analysis
    (604) 699-4014