Agnico Eagle To Subscribe 50% Interest In Minas De San Nicolas Of Tech Resources

(RTTNews) - Agnico Eagle Mines Ltd (AEM) announced Friday that the company has agreed to subscribe to a 50 percent interest in Minas de San Nicolás, S.A.P.I. de C.V., a wholly-owned Teck Resources Ltd (TECK, TCK_A.TO) subsidiary.

Through the deal, Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás. Minas owns the San Nicolás copper-zinc development project in Zacatecas, Mexico.

Agnico Eagle said it will subscribe to $580 million of Minas shares, for a 50 percent interest. The share subscription implies a notional $290 million acquisition cost. Agnico Eagle's funding in the first two years is expected to be approximately $50 million.

Closing of the transaction is expected to be in the first half of 2023.