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Canadian mining company Teck Resources Ltd acquires 50% in Brazil’s Horizonte Minerals Plc.

Canadian mining company Teck Resources Ltd last week announced it had agreed on a deal with Brazilian company Horizonte Minerals for the acquisition of about 50% control in Horizonte Minerals.  According to the details released under the terms of the agreement by Horizonte Minerals, the deal is expected to result in one of the largest nickel projects in the country.

In the swop deal, Horizonte Minerals will acquire total ownership of the Araguaia project in the country’s north from the Canadian firm while in exchange; the Canadian firm will obtain a 50% stake in the now larger Horizonte Minerals. Horizonte Minerals, listed in the London Stock Exchange expects the investment swop deal to enable it produce about 100 million tons of high grade reserves by combining the Araguaia project with its adjacent Lontra License.

This agreement will result in Horizonte owning and controlling 100% of Lontra alongside its 100% ownership of Araguaia. Horizonte Minerals chief executive, Jeremy Martin said the deal was a transformational one for the company as it takes it to the next level with regard to valuation. Further to the announcement, Horizonte Minerals announced as well that it will be commencing an 8,000 meter resource drilling program in the coming few weeks with the target being to deliver a JORC-compliant resource by the first quarter of 2011.

The latest deal comes in the wake of another major deal the company had undertaken with the first being the alliance with AngloGold Ashanti at an investment pegged at 5.3 million pounds. Other than that, Horizonte obtained about 5.13 million via placing at about 10 pence per share.

Teck Resources Limited is a leading Canadian mining company engaged in mining and related activities, including exploration, development, processing, smelting and refining. Its major products are metallurgical coal, copper and zinc. The Company also produces precious metals, lead, molybdenum, electrical power, fertilizers and various specialty metals. Metal products are sold as refined metals or concentrates. It also owns an interest in certain oil sands leases, and has a partnership interest in an oil sands development project.

Horizonte Minerals Plc is an international mineral resources exploration group focused on the discovery, appraisal and development of gold and base metal deposits in Brazil and Peru.  Even so, the purchase of the advanced Araguaia nickel project located in Carajas mineral district is still pending shareholder approval and other regulatory certifications before it can conclude.

1 Aug 2010.