Teck Resources, Canada’s largest diversified miner, is buying Goldcorp’s 21 per cent minority interest in the San Nicolás copper-zinc project located in Zacatecas, Mexico for $50 million.
Once the deal is completed, expected to be in Q3 2017, Teck will be the sole owner of the San Nicolás project.
Teck plans to make San Nicolás an open pit copper-zinc mine, giving it a three to four-year timeline to production.
This comes shortly after Goldcorp sold the Mexican Camino Rojo gold and silver project to Orla Mining, as a part of the company’s strategy to focus on highly profitable core assets.
Teck, which primarily mines coal, zinc and copper, posted earnings and revenue in April which showed weakness in its zinc unit.
Analysts believe that taking over the San Nicolás project could help the Vancouver-based miner boost its zinc output.