Date closed: 7/9/2015

Value: US$525 million   

On July 9, 2015, Teck Resources Ltd. (Teck) announced that Compañia Minera Teck Carmen de Andacollo (CDA )entered into a long-term gold offtake agreement with RGLD Gold AG (RGLDAG), a wholly owned subsidiary of Royal Gold, Inc. Teck has increased its cash position by US$162 million as a result of CDA entering  into the offtake agreement and terminating a separate royalty agreement with Royal Gold Chile Limitada.

Under the terms of the offtake agreement, RGLDAG made an advance payment of US$525 million to CDA, which has agreed to sell and deliver, on a monthly basis, an amount of gold equal to 100% of the payable gold produced from the Carmen de Andacollo mine until 900,000 ounces have been delivered, and 50% thereafter. RGLDAG will also pay a cash price of 15% of the monthly average gold price at the time of each delivery. The offtake agreement applies to certain mining exploitation  concessions currently owned by CDA, any mining concessions acquired within an approximately 1.5 kilometre area of interest and certain other mining concessions that CDA may acquire.

Teck, headquartered in Vancouver, British Columbia, is a diversified resource company.

BLG acted as Canadian counsel to Teck with a team led by Fred Pletcher that included Michael Waters and Michelle Wilkinson.