Agnico Eagle signs deal to partner with Teck on mine in Mexico

VANCOUVER – Agnico Eagle Mines Ltd. has signed a deal with Teck Resources Ltd. to take a 50 per cent stake in a copper-zinc project in Mexico for US$580 million.

Under the agreement, Agnico Eagle will become a joint venture partner with Teck in Minas de San Nicolás, S.A.P.I. de C.V., which owns the San Nicolás development project in Zacatecas, Mexico.

Teck chief executive Don Lindsay says the opportunity to add the operating and development experience of Agnico Eagle should generate substantial benefits for the project.

The companies estimate development capital costs for the project could be in the range of US$1 billion to US$1.1 billion, based on current estimates.

First production expected in 2026, with an estimated mine life of 15 years and a potential for mine life extension.

It is expected to produce 63,000 tonnes per year of copper and 147,000 tonnes per year of zinc in concentrate over its first five years of production.

This report by The Canadian Press was first published Sept. 16, 2022.

Companies in this story: (TSX:AEM, TSX:TECK.B)