Parties
Company
Conuma Coal Resources Limited
Company
Teck Resources Limited
Teck Resources Limited has agreed to sell all assets and liabilities of the Quintette steelmaking coal mine in north-eastern British Columbia to a subsidiary of Conuma Resources Limited for $120 million (CAD 164,119,200.00). This was announced on December 19, 2022. The payment will be made in cash over a 36-month period and includes a 25% net profits interest royalty, payable after Conuma recovers its investment in Quintette. The transaction, expected to close in Q1 2023, is subject to regulatory approvals and customary conditions. Quintette has been on care and maintenance since 2000. Forward-looking statements in the press release mention expectations regarding the sale and potential risks and uncertainties, including failure to receive necessary consents, performance issues from Teck’s counterparty, changes in economic conditions, and market conditions for metallurgical coal. These risks could cause actual results to differ materially from the anticipated outcomes, and Teck has detailed these risks in its reports to Canadian securities administrators and the U.S. Securities and Exchange Commission.
Deal Type
Merger & AcquisitionIndustry
MiningTransaction
$ 120,000,000Deal Status
ClosedClosing Date
20 March 2023