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Vancouver, B.C. – Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced today that Compañia Minera Teck Carmen de Andacollo (“CDA”) has entered into a long-term gold offtake agreement with RGLD Gold AG (“RGLDAG”), a wholly owned subsidiary of Royal Gold, Inc. (NASDAQ: RGLD; TSX: RGL). Teck has increased its cash position by US$162 million as a result of CDA entering into the offtake agreement and terminating a separate royalty agreement with Royal Gold Chile Limitada. Under the terms of the offtake agreement, RGLDAG made an advance payment of US$525 million to CDA, which has agreed to sell and deliver, on a monthly basis, an amount of gold equal to 100% of the payable gold produced from the Carmen de Andacollo mine until 900,000 ounces have been delivered, and 50% thereafter. RGLDAG will also pay a cash price of 15% of the monthly average gold price at the time of each delivery. The offtake agreement applies to certain mining exploitation concessions currently owned by CDA, any mining concessions acquired within an approximately 1.5 kilometre area of interest and certain other mining concessions that CDA may acquire. CDA and Royal Gold have also agreed to terminate an earlier royalty agreement. Pursuant to that termination agreement, CDA paid Royal Gold Chile Limitada (“RG Chile”) a US$345 million fee in order to terminate the royalty agreement with RG Chile entered into in 2010, under which RG Chile was entitled to royalty payments based on 75% of payable gold produced by CDA up to 910,000 ounces and 50% thereafter. In addition to the termination fee, CDA will make a post-closing payment of approximately US$9 million to RG Chile for royalties payable to the end of June. Teck holds a 90% interest in CDA and ENAMI, a Chilean State owned entity dedicated to the promotion and development of mining in Chile, holds the remaining 10% interest.
About Teck Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy.
Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Learn more about Teck at www.teck.com or follow @TeckResources.
Investor Contact: Greg Waller Vice President, Investor Relations and Strategic Analysis 604.699.4014 greg.waller@teck.com Media Contact: Chris Stannell Senior Communications Specialist 604.699.4368 chris.stannell@teck.com
