- Teck Resources (TSX:TECK.A) will take a 9.9 per cent stake in junior miner Intrepid Metals (TSXV:INTR) for consideration of C$3.96 million
- Intrepid Metals is a Canadian junior miner exploring for high-grade critical metals, including copper, silver and zinc, in southeastern Arizona
- The critical metals stock has added 16.67 per cent year-over-year
Teck Resources (TSX:TECK.A) will take a 9.9 per cent stake in junior miner Intrepid Metals (TSXV:INTR) for consideration of C$3.96 million.
Proceeds from the non-brokered private placement will go towards a 24-month exploration and development program on Intrepid’s 10,346-acre Corral copper project in Arizona, which features a 3.5 kilometre trend of shallow mineralization and is adjacent to claims owned by Rio Tinto and Ivanhoe Electric (TSX:IE) and only 22 miles north of the Bisbee mining camp, where more than 8 billion pounds of copper has been unearthed to date. The program will include:
- A 50 line-kilometre induced polarization survey.
- Geological mapping.
- Geochemical sampling.
- Metallurgical work.
- Permitting work.
- Follow-up drilling to expand known zones and test new targets.
According to Thursday’s news release, Intrepid’s leadership team in confident that a combination of modern exploration techniques and historical data in hand will allow it to usher Corral into the development-studies stage.
Investment details
Teck will pick up 8.8 million shares priced at C$0.45, a slight premium to the closing price of C$0.42 on Wednesday, granting it the rights, over a three-year period, to participate in future financings to maintain pro-rata interest and increase its ownership in Intrepid up to a 15 per cent stake.
The copper and zinc giant will also hold the right to nominate two representatives to a four-person technical committee overseeing Corral project development, with Teck holding a tie-breaking vote, in addition to a 30-month right of first refusal, should the project become available for sale.
The transaction is expected to close by year-end 2025.
Management commentary
“I look forward to welcoming Teck as a new shareholder and strategic partner of Intrepid,” Mark J. Morabito, chief executive officer of Intrepid Metals, said in a statement. “Teck’s decision to make a cornerstone investment in the company reflects the quality, scale potential and strategic relevance of our Corral copper project in Cochise County, Arizona. Corral has already delivered multiple broad, near-surface copper-gold-silver intercepts with locally high-grade intervals, and our ongoing work continues to refine and expand the Ringo, Earp, Holliday and Clanton zones, while advancing our understanding of the broader mineral system and porphyry potential. With a committed, well-funded exploration program and the benefit of Teck’s technical engagement through the technical committee, Intrepid will be positioned to systematically advance Corral and build long-term value for shareholders.”
About Intrepid Metals
Intrepid Metals is a Canadian junior miner exploring for high-grade critical metals, including copper, silver and zinc, in southeastern Arizona. The company’s Tombstone South project, located within the historical Tombstone mining district, boasts geological similarities to the Taylor Deposit, which was purchased for US$1.3 billion in 2018.
Intrepid Metals stock (TSXV:INTR) last traded at C$0.42 and has added 16.67 per cent year-over-year.
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