Teck buys stake in Ventures Resources — Additional financing opens door for more exploration

Teck (TEK-T) has agreed to invest $4.1 million in Ventures Resource (VRS-V) for the exploration of the junior’s Veta property in Alaska.

The investment gives Teck the right to select and earn a 60% interest in one project from that property upon completion of a feasibility study. Teck can earn an additional 10% by arranging Ventures’ share of construction financing.

“This transaction provides the financing required to thoroughly explore our Veta property,” says Greg Sheardown, president of Ventures.

Under terms of the agreement, Teck purchased 3.7 million shares of Ventures at $1.10 each to make up the $4.1 million investment.

Ventures also has granted Teck additional warrants that could increase the company’s total investment to $7.6 million over the next two years. That part of the deal comprises 1.38 million warrants at $1.25 each for one year and 1.27 million warrants at $1.40 each for two years.

The Veta property covers 1,500 sq. miles in east-central Alaska, east of Teck’s Pogo gold project, a joint venture with Japan’s Sumitomo Metal Mining. The Veta property contains two mid-stage gold projects, as well as 24 early-stage prospects.

“The western third of Veta has potential for gold targets similar to Pogo, whereas the central third has polymetallic potential,” says Sheardown. “The southern third contains potential for copper-gold porphyries.” Exploration of Veta will be conducted by WGM, the Alaskan subsidiary of consulting firm Watts, Griffis & McOuat.