Management control of Golden Knight goes to Teck Corp.

It appears that Teck Corp. has secured a major position in what will almost certainly become another large gold producer — the Inco-Golden Knight project in Quebec’s Casa Berardi area. Teck recently arranged to take management control of Golden Knight in which it has a 30% equity.

Teck president, Dr Norman Keevil Jr, describes the situation as a “non event” because it was agreed to and announced about a year ago. He was non-committal on whether Teck will increase its equity in Golden Knight which seems likely, given Teck’s record of acquiring such companies, primarily through mergers. Dr Norman Keevil Sr has noted in the past that Teck was responsible for taking at least 21 companies off the Toronto Stock Exchange through mergers.

Dr Keevil Jr will become president of Golden Knight which has a 40% working interest in the Casa Berardi project. He confirms that Golden Knight has funding commitments through the exploration stage but will require help in raising capital for production. At that point, Teck would be in a good position to increase its equity position in Golden Knight and reap even greater financial benefits from the new gold producer.

Recent results from the property have increased the scope of the Golden Pond West zone and the project as a whole. Inco, the project operator, is currently completing a feasibility study on the Golden Pond East zone which would probably be put into production first while exploration continues on other parts of the property.