Teck backs Joutel in Cuban exploration

Latin America continues to beckon Toronto-listed Teck.

The major is investing $1 million in Joutel Resources (TSE), in return for which it can earn a half interest in three of the former’s Cuban properties. An agreement calls for Teck to buy 1.5 million subordinate voting shares in Joutel for 65 cents each. It can also invest an additional $4.5 million, at up to $2 per share, over three years.

Joutel’s Cuban properties are in the central and eastern portions of the island. Teck can earn a half interest in three of them by completing a feasibility study and financing Joutel’s share of development costs. Joutel has the right to explore and develop 1.2 million acres in the Caribbean country. This year, it will spend $2 million on drilling and airborne geophysics in the search for precious and base metal deposits. In recent months, the focus of Teck’s exploration budget has shifted to Latin America, particularly Chile and Mexico, with some activity in Venezuela, Bolivia, Ecuador and Argentina.