A couple of noteworthy news bites over the last few days in the world of base metals and precious metals.
Teck: Yesterday, B.C.s Teck Resources Limited (TSX: TCK.B, NYSE: TCK) announced it had entered a non-binding agreement to sell its one-third interest in Waneta Dam for $825 million to BC Hydro. The proceeds will be used to pay off Tecks debt. This transaction with BC Hydro is the latest step in Tecks plan to significantly reduce our debt and position the company for long-term success, said Don Lindsay, Teck president and CEO in a statement. Teck anticipates the deal will close by year-end and it is subject, among other things, to the completion of due diligence. For a recent Canadian Business interview with Tecks Lindsay, follow the link. Yamana: Yesterday, Yamana Gold Inc. (TSX: YRI, NYSE: AUY) provided an update on some of its development and near development stage projects. The update comes less than two weeks after the Toronto-based gold miner announced it was selling three of its non-core assets to Aura Minerals Inc. I made a recent blog entryabout this. For the Mercedes project in Mexico, Yamana expects to drill 30,000 metres at a cost of about US$4 million with the goal of extending the life of the mine. A feasibility study and a construction decision for the project are expected by the first quarter of 2010. At the Pilar project in Mexico, Yamana has budgeted US$4.1 million for exploration and similar to Mercedes, expects both a feasibility study and a construction decision by the first quarter of 2010. And last, at Minera Florida, in Chile, exploration efforts at the operating mine have continued. Yamana expects a resource estimate for these new targets will be completed in the last quarter of this year.
Gold Vending Machines: According to a news report in Britains Times Online. Germans have a new way to sell goldthrough vending machines. After depositing your money in the machines, out comes a bar of gold ranging in weight from one to 10 grams. Customers can even select from a Maple Leaf Five Canadian dollar coin or a Kangaroo Fifteen Australian dollar coin. As for golds recent fluctuations, the vending machine even considers that. Every 15 minutes it updates the price of the golden bars. The machine is a prototype and was just installed in the Frankfurt airport. TG-Gold-Super-Markt, the gold machine vendor, hopes to install 500 of the machines throughout Germany, Switzerland and Austria. To prevent anyone running off with the machine or its golden contents, it is encased in armour-plated casing and is located near security cameras.