Fronteer Development Group Inc. (TSX:FRG) and Teck Resources Ltd. (TSX:TCK.B) are planning to sell two gold projects in Turkey for US$40 million.
The two Vancouver-based companies have signed a memorandum of understanding to sell 100% of their Agi Dagi and Kirazli gold projects to Toronto's Alamos Gold Inc. (TSX:AGI).
Alamos will also issue four million shares to the companies.
Teck owns 60% of the two projects, while Fronteer owns 40%.
Teck's and Fronteer's share prices were down roughly 5% during mid-day trading on Thursday following the announcement.
Fronteer said in a release that the deal would provide it with additional funds to advance its gold development pipeline in Nevada.
Agi Dagi and Kirazli are advanced-stage gold exploration projects located in the Biga Peninsula of northwestern Turkey.
Completion of the transaction is subject to a 60-day due diligence period and the approval of Alamos' board of directors and the TSX.
Teck's share price this week ranged between $27.10 and $28.51; 52-week high: $35.75; 52-week low: $2.60.
Fronteer's share price this week ranged between $4.74 and $4.94; 52-week high: $5.16; 52-week low: $1.55.