Listed Mining Companies
TORONTO (miningweekly.com) – Canada's Teck Resources and Fronteer Development Group have signed a memorandum of understanding with Alamos Gold, for the sale of two gold projects in Turkey for $40-million in cash and four-million shares.
Teck owns 60% of the Agi Dagi and Kirazli projects and Fronteer holds the other 40%.
The companies had indicated they were planning to sell the projects – in Teck's case as part of its divestiture of several noncore assets.
Fronteer and Teck have agreed to negotiate exclusively with Alamos and completion of the transaction is subject to a 60-day due diligence period, the execution of definitive agreements, and the approval of Alamos' board of directors and the TSX.
The agreement does not include a third Turkish property co-owned by Teck and Fronteer – the Halilaga copper/gold porphyry project.
Last month, Teck agreed to sell its 78,8% holding the Morelos gold project, in Mexico, to junior Gleichen Resources, for $150-million in cash plus shares representing 4,9% of Gleichen.
Other sales by the group this year include Teck's 50% in the Hemlo gold operations to Barrick Gold, a 60% interest in the Lobo Marte gold property, in Chile, to Kinross, and a portion of the gold produced at the Andacollo mine, in Chile, to Royal Gold.
Teck also sold its 40% share of the Pogo gold mine, in Alaska, to Sumitomo Metal Mining, which, with Sumitomo Corp, owns the balance of the asset, for $245-million.
The company has been selling off the assets as part of a plan to lower costs and restructure and repay debt.
