Teck Resources Buys Securities Of Jet Gold

(RTTNews) - Teck Resources Limited (TCK_A.TO, TCK_B.TO, TCK) said that it acquired 8.33 million common shares, and a $389,117 principal amount convertible debenture of Jet Gold Corp.

Jet Gold issued the securities in satisfaction of $889,117 of indebtedness owing to a Teck subsidiary. Jet Gold had assumed the indebtedness in connection with its indirect acquisition of control over a 30% interest in Haib Minerals (PTY) Ltd., in which Teck indirectly holds a 70% interest. The common shares were issued for an aggregate price of $500,000, and the convertible debenture was issued for a price of $389,117. No cash consideration was paid by Teck and the purchase price was fully satisfied by set-off against the assumed indebtedness.

As a result of the transaction, Teck holds 8.33 million Jet Gold common shares, approximately 11.6% of Jet Gold's outstanding common shares, and a $389,117 principal amount convertible debenture. The debenture matures in 48 months and is convertible at Teck's election, in whole or in part, into Jet Gold common shares at a price of $0.07 per share. If Teck were to convert the entire principal amount of the debenture, Teck would hold approximately 17.9% of Jet Gold's outstanding common shares, calculated on a partially diluted basis assuming the conversion of the debenture only.