Teck Resources, a Canadian mining company, has signed an option deal with Arras Minerals for its critical minerals licence package in Kazakhstan.
The option agreement is limited to the package in Bozshakol-Chingiz Magmatic Arc in Pavlodar.
It excludes the Beskauga copper-gold project, and regional exploration licences Stepnoe, Ekidos, Aimandai and Elemes.
As part of the arrangement, Teck will solely fund exploration work through 2025. The initial expenditure will be $5m (C$6.79m) before 31 December 2025 across two packages totalling around 1,736km².
After the initial exploration phase is completed, Teck will have the option to select up to four designated properties covering 120km² of area each.
At these properties, it will conduct exploration at a cost of up to $47.5m per project, helping it earn up to 75% interest in each of the four projects.
The company also agreed to reimburse some project-related expenses to Arras through $1m in cash on signing, and potentially other payments in the future, if Teck selects to go ahead with the future phases.
Arras will act as the manager for the first year of the two-year programme and Teck will hold the option to assume the role thereafter.
Arras Minerals CEO Tim Barry said: “As an early-mover into Kazakhstan two and a half years ago, following the substantial reforms to the business environment and mining law, Arras has assembled the third-largest land package in the country next to Rio Tinto and Fortescue and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc.
“We recently completed our second summer field season across the regional licence package and are now analysing more than 50,000 soil samples we have collected across the approximately 3,300km² licence package. This programme was based on the successful 2022 field programme where more than 16,000 soil samples identified new targets to follow up.”
Last month, Teck agreed to sell a 100% stake in its steelmaking coal unit EVR to Glencore, Nippon Steel and POSCO, valuing the business at around $9bn.
