By Adriano Marchese


Agnico-Eagle Mines Ltd. said Friday that it would subscribe for a 50% interest in a Mexican mine belonging to a subsidiary of Teck Resources Ltd. for $580 million in shares, creating a new joint venture.

The Canadian mining company said subscribe for a 50% interest in Minas de San Nicolas, S.A.P.I. de C.V., Teck's subsidiary which owns the San Nicolas copper-zinc development project in Zacatecas.

Agnico Eagle says the project has significant geological potential as well as numerous poly-metallic and precious metals opportunities, estimating San Nicolas to contain around 105.2 million tons of proven and probably reserves at an average grade of 1.12% copper, 1.48% zinc, 0.4 grams per ton of gold and 22 grams per ton of silver. On a copper-equivalent basis, this is more than 2%, it said.

The subscription is comprised of a $290 million acquisition cost to Agnico Eagle for the stake in the project, plus its contribution of half of the first $580 million of project for its own account.

For the first two years, Agnico Eagle expects its funding to be around $50 million, and first production is expected in 2026 with a mine life of 15 years.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

09-16-22 0934ET