- Mining giant Teck Resources (TSX:TECKA) will take a 9.9 per cent stake in critical metals explorer Metal Energy (TSXV:MERG), granting it exposure to a highly-prospective portfolio in Manitoba and British Columbia
- Metal Energy is a Canadian critical metals company exploring for gold, silver, copper, molybdenum, cobalt, nickel, rhenium and platinum group elements
- The critical metals stock has added 220 per cent year-over-year
Mining giant Teck Resources (TSX:TECKA) will take a 9.9 per cent stake in critical metals explorer Metal Energy (TSXV:MERG), granting it exposure to a highly-prospective portfolio in Manitoba and British Columbia.
Teck is expected to pick up 4,442,000 shares from an offering including 8.88 million premium flow-through common shares priced at C$0.73 and 6.2 million common shares priced at C$0.45.
As part of the deal, Teck and Metal Energy will enter into an investor rights agreement, including top-up and information rights, and the requirement that Teck funds go towards exploration of Metal Energy’s NIV property in BC, whose untested porphyry copper-gold-molybdenum targets, suggestive of a large-scale mineralized system, represent some of the most compelling in the province.
According to Friday’s news release, the transaction is expected to close on December 16, with all shares issued subject to a hold period of four months plus one day in accordance with Canadian securities laws.
The news follows Centerra Gold’s planned investment in Metal Energy announced in November, which will also afford it a 9.9 per cent stake, reinforcing the explorer’s growth initiatives with the expertise of two major miners with proven success in BC.
Management commentary
“We are pleased to welcome Teck as our second strategic investor in Metal Energy. Having one major mining company already on our register provides meaningful validation, adding a second reinforces that confidence,” Stephen Stewart, chairman of Metal Energy, said in a statement. “We look forward to having Centerra and Teck form a joint technical advisory committee and believe Teck’s long track record in base metals in British Columbia is an excellent complement to Centerra’s focus on gold operations in the region. It’s worth underscoring how rare it is to have two major mining companies invest in an undrilled asset. Their participation reflects both the quality of the targets and the exceptional work of Charlie Greig and Alex Walcott in advancing this opportunity.”
“With this financing fully subscribed and two major mining companies now aligned with us, we hope the broader mining investment community will take notice of Metal Energy and NIV as our team moves toward its next objective of delivering another discovery in the region,” Stewart concluded.
About Metal Energy
Metal Energy is a Canadian critical metals exploration company with a portfolio prospective for gold, silver, copper, molybdenum, cobalt, nickel, rhenium and platinum group elements.
Metal Energy stock (TSXV:MERG) last traded at C$0.64 and has added 220 per cent year-over-year.
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