Teck Resources Ltd. (TSX:TCK.b) has signed a joint-venture agreement with Copper Fox Metals Inc. (TSX-V:CUU) to explore a property in Northern B.C. for potential development, the companies announced July 16.
The partnership will involve Teck paying Copper Fox up to $60 million:
- $20 million on signing the agreement;
- $20 million if the decision is made to bring the Schaft Creek property into production; and
- $20 million on the completion of the mine.
The agreement will give Teck 75% ownershipof the property, with Copper Fox owning 25%.
If costs exceed $60 million, Teck will pick up the tab.
Copper Fox’s shares soared 35.59% to $0.80 on July 16. Teck Resources’ shares, meanwhile, rose 2.28% to $23.73.
