Teck’s $262 Million Acquisition of Quebrada Blanca Minority Interest


Carey and Alcaíno Abogados advised on the deal

Teck Resources Limited has acquired an additional 13.5% interest in Compañía Minera Teck Quebrada Blanca S.A. through the purchase of Inversiones Mineras S.A., a private Chilean company. The acquisition brings Teck’s interest in QBSA to 90%. ENAMI, a Chilean State agency, holds a 10% preference share interest in QBSA, which does not require ENAMI to fund capital spending.

QBSA’s principal asset is the Quebrada Blanca Phase 2 (“QB2”) copper development project located in Northern Chile. QB2 is in the final stages of permitting, and a project sanction decision is not expected before the second half of 2018.

IMSA holds 8.5% of the ordinary shares of QBSA and a 5% preferred share interest. The purchase price consists of US$52.5 million paid in cash on closing, an additional payment of US$60 million payable on the issuance of the major approval of the social and environmental impact assessment for the QB2 project and the expiry of certain appeal rights, and a further US$50 million payable within 30 days of the commencement of commercial production at QB2. Additional amounts may become payable to the extent that average copper prices exceed US$3.15 per pound in each of the first three years following the commencement of commercial production, up to a cumulative maximum of US$100 million if commencement of commercial production occurs prior to January 21, 2024, or up to a lesser maximum amount in certain circumstances thereafter.

Carey advised Teck Resources Chile Limitada with Rafael Vergara (Pictrue), Cristián Eyzaguirre y Francisco Guzmán. Asociados Alejandro Montt, Giannina Veniú, Nicolás Calderón, Agustín Lira y Yoel Magendzo.

Alcaíno Abogados advised Hurtado Vicuña with Alfredo Alcaíno, Victoria Ripoll, Benjamín Alcaíno and Natalia Cox.

Involved fees earner: Alfredo Alcaíno – Alcaíno Abogados; Victoria Ripoll – Alcaíno Abogados; Benjamín Alcaíno – Alcaíno Abogados; Natalia Cox – Alcaíno Abogados; Cristián Eyzaguirre – Carey; Francisco Guzmán – Carey; Giannina Veniu – Carey; Nicolás Calderón – Carey; Agustín Lira – Carey; Yoel Magendzo – Carey; Rafael Vergara – Carey; Alejandro Montt – Carey;

Law Firms: Alcaíno Abogados; Carey;

Clients: Teck Resources Limited; Hurtado Vicuña Group;

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Author: Ambrogio Visconti.