Teck (TEK-T) and its Australian partner, Camelot Resources, have acquired 92% of the outstanding shares of producer Mount Edon Gold Mines. The takeover is valued at A$170 million.
Teck acquired a 14.5% interest in Camelot in June 1996 with the intention of identifying projects with potential to produce 100,000 oz. per year.
The acquisition will help Teck meet its long-term objectives of setting up an operations base in Australia and establishing a presence close to Southeast Asia.
Mount Edon produces some 100,000 oz. gold per year from its Tarmoola open-pit mine in Western Australia’s Leonora district.
Reserves at Tarmoola are estimated at 14 million tonnes grading 2.3 grams gold, equivalent to 1 million oz. An additional resource is estimated at 1.1 million oz.
Mount Edon has 77 million shares outstanding.
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