Under an agreement to buy a half interest in the Lobo gold deposit and adjacent properties, Teck (TSE) has paid a deposit of US$1.6 million to Cominco Resources International (TSE).
The properties, in the Maricunga district of northern Chile, have been on the market since early 1991.
The deposit is against an agreed minimum price of US$15.8 million in cash plus a net profits interest of 2% on Teck’s share of production in excess of 1.6 million ounces.
If Teck does not make an offer at or above the agreed minimum price within 60 days, Cominco can require the sale be completed at the minimum price within the following 75 days (to either Teck or a related entity).
Cominco is involved in several Chilean plays and has a 9% interest in the Quebrada Blanca copper project which is to start up in the first half of 1994.
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