Arena Minerals and Teck Mining signed a joint venture agreement Oct. 23, giving Teck a 60 percent share in one of Arena's Atacama Copper ventures.
The agreement covers the Solitario and Paciencia North prospects in Antofagasta, Chile. Teck will have a $19.5 million buy-in over six years in exchange for 3,703,703 shares of the project.
"We are pleased to be partnering with Teck in what is now our third joint venture agreement this year, and welcome Teck as a strategic shareholder, " Arena President and CEO Will Randall said. "Bringing Teck in to the mix of partners is ideal for Arena and its shareholders, given the company's international reputation, size and experience. Teck has been operating successfully in Chile for decades and their wealth of knowledge will no doubt add tremendous value to our ongoing exploration of the Atacama Property. Combined with our other two joint venture agreements we now have a combined exploration commitment in excess of $60 million for the Atacama property."
The deal comes with several options for Teck to also acquire majority interest in the property itself. For a minimum exploration investment of $1.5 million, Teck can gain 51 percent undivided interest, and for another $15 million in exploration investment by 2021, Teck could end up with a total of 75 percent of what would then have become a special purpose entity co-owned with Arena.
The deal is expected to close on or around Sunday, Nov. 15., and is pending TSX Venture Exchange approval.
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