BUZZ-Teck Resources Ltd: Forms JV with Goldcorp for Chile projects

Thu Aug 27, 2015 11:12am EDT
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** Canadian diversified miner's shares up 10 pct at C$8.14; U.S.-listed shares up 12 pct at $6.18

** Goldcorp Inc's shares up 2 pct at C$17.80; U.S.-listed shares up 2.4 pct at $13.44

** Goldcorp and Teck Resources will form joint venture to develop neighboring mines in Chile to cut costs as metal prices languish at multi-year lows

** Joint venture, named "Project Corridor", combines Goldcorp's El Morro gold and copper project with Teck's Relincho copper and molybdenum mine; sets initial capital cost target of $3.5 bln to bring properties to production

** RBC Dominion Securities analysts say JV is "appropriate and necessary" given rising social concerns in Chile regarding long-term availability of both water and power

** Up to Wednesday's close, Teck's Toronto-listed stock had fallen nearly 54 pct this year, while Goldcorp's stock had fallen 19 pct; gold prices fell 5 pct in the period