Joutel and Teck complete Cuban deal

Two TSE-listed companies, Teck and Joutel Resources, have reached an agreement to develop the latter’s exploration lands in Cuba.

In accordance with the agreement, Teck has bought 1.5 million subordinate voting shares of Joutel at 65 cents each, for a total investment of $1 million. It can also buy a further 3 million Joutel shares over three years, representing an investment of $4.5 million. In addition, Teck can participate in future financings to retain its pro rata interest in Joutel. The share purchase allows Teck to earn half of Joutel’s interest in three Cuban properties. Joutel holds exclusive mineral exploration and development rights to 4,660 sq. km of land in Cuba. Development and exploitation of a deposit will be shared 50-50 between Joutel and Geominera S.A., a Cuban government entity.

Teck must complete a formal feasibility study and finance Joutel’s share of development costs of bringing the properties to the commercial production stage.

Joutel will continue to manage the Cuban exploration program, and Teck will become the operator of the first three mines developed on the Joutel concessions.