Teck Resources, a Canada-based mining company, has inked a joint venture agreement with Copper Fox Metals to jointly develop the Schaft Creek property in northern British Columbia.
Teck has a 75% interest in Schaft Creek, while Copper Fox will hold the remaining stakes in the copper-gold exploration property located 80 kilometers south of Telegraph Creek in Northwest British Columbia.
Under the agreement, Teck will initially make a payment of $20m to Copper Fox and additional $20m will be paid following a decision to bring the property into production. The company will pay extra $20m following the completion of mine construction, besides committing to fund first $60m of costs of the joint venture prior to a production decision.
However, if the costs exceed $60m, Teck is expected to fund Copper Fox’s 25% portion of additional costs, which will first proportionately reduce any milestone payments owing, and thereafter will be made by way of loans to Copper Fox, according to the statement.
Teck is intending to commence a 10,000 meter drilling program during the 2013 field season aimed at exploration, potential resource expansion and geotechnical controls.