Teck Sells Majority Stake in Mexican Gold Project

9 August 2009 (Last Updated August 9th, 2009 18:30)

Canadian miner Teck Resources has agreed to sell its majority stake in the Morelos gold project in Mexico to Gleichen Resources. The sale is part of Teck’s asset sale plan to reduce $10bn debt accrued last year in its acquisition of Fording Canadian Coal Trust, Reuters reports

Canadian miner Teck Resources has agreed to sell its majority stake in the Morelos gold project in Mexico to Gleichen Resources.

The sale is part of Teck’s asset sale plan to reduce $10bn debt accrued last year in its acquisition of Fording Canadian Coal Trust, Reuters reports.

Teck, which owns a 78.8% stake in Morelos, will receive $150m in cash and 4.9% of Gleichen’s issued and outstanding shares worth about C$800,000.

The transaction is expected to close in the fourth quarter of 2009, Teck said.

Canada-based Goldcorp owns the remaining stake in the project.