Teck Closes Strait Gold Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2011) - Teck Resources Limited (TSX: TCK.A, TCK.B, NYSE: TCK) ("Teck") announced today the closing of a $600,000 private placement in Strait Gold Corporation (TSX-V: SRD) ("Strait Gold"). Teck subscribed for 3,000,000 Units of Strait Gold (the "Units") at $0.20 per Unit. Each Unit comprises one common share and one share-purchase warrant exercisable at $0.25 within 12 months of closing of the placement or at $0.35 by December 31, 2013. The shares, and shares that would be issued on exercise of the warrants, represent 10.56% of Strait Gold's issued shares, calculated on a partially diluted basis assuming the exercise of the warrants only. The securities issued to Teck are legended and restricted from trading until April 17, 2012. Teck will have the right to participate in future financings to maintain its percentage interest in Strait Gold. The funds will be used by Strait Gold for general working capital.
This release is issued under the early warning requirement of the Ontario Securities Act and National instrument 62-103.
The private placement was made as part of a larger transaction under which Strait Gold's Peruvian affiliate granted Teck's Peruvian affiliate an option to earn an interest in its Alicia copper-gold property in Peru. See Strait Gold's news release issued December 9, 2011 for details. The subscription was made for investment purposes. Under the terms of the option, Teck is required to exercise the warrants included in the Units in order for its affiliate to earn an interest in the Alicia property. Teck may otherwise determine to increase or decrease its investment in Strait Gold depending on market conditions and any other relevant factor.
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Further information about Teck can be found at: www.teck.com.