The joint venture partners will work together for advancing permitting and development of the copper-zinc development project in Zacatecas
Agnico Eagle Mines and Teck Resources have finalised their 50:50 joint venture (JV) for advancing the San Nicolás copper-zinc development project in Mexico.
The JV deal was announced in September 2022.
Under the terms of the deal, Agnico Eagle Mines via its fully-owned Mexican subsidiary subscribed for a 50% stake in Minas de San Nicolás (MSN), the holding company for the mining project, for $580m. Minas de San Nicolás was fully-owned by Teck Resources at the time of signing the deal.
The proceeds from the subscription will be utilised by Minas de San Nicolás for funding the first $580m of post-closing costs. Subsequent funding will be made as per the ownership percentage of each partner.
There will be no up-front payment from Agnico Eagle Mines, which will make its contributions as costs for study and development are incurred.
The joint venture partners will work together for advancing permitting and development of the San Nicolás copper-zinc development project in Zacatecas.
An environmental impact assessment and permit application is being planned to be submitted for the project in the first half of this year. The partners are aiming to wrap up a feasibility study early next year.
First production from the project is anticipated in 2026.
Teck Resources stated: “Concluding the San Nicolás joint venture, initiating permitting, and completing the next stage of technical studies, is another positive step in Teck’s strategy to advance its industry leading Copper Growth portfolio in a timely and prudent manner and for Agnico Eagle in leveraging its Mexican operating experience and know-how to pursue growth in a high-quality, copper-zinc mineral deposit located in a premier mining jurisdiction in Mexico.”
San Nicolás is claimed by Teck Resources as the largest undeveloped volcanic-hosted massive sulfide deposit (VHMS) deposit in Mexico. As of 31 December 2021, Teck Resources estimated the project to hold 105.2 million tonnes of proven and probable mineral reserves at average grades of 1.12% copper, 0.4 g/t gold, 1.48% zinc, and 22 g/t silver.