Teck Withdraws Separation Proposal
April 26 2023 - 9:00AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) today announced it has determined not to proceed with the
consideration by its shareholders at its upcoming annual and
special meeting on April 26, 2023 (“the Meeting) of the current
proposal to reorganize Teck’s business into two companies: Teck
Metals Corp. and Elk Valley Resources Ltd. (“EVR”), and the related
items of business in respect of the consideration of the stock
option plan for EVR and the shareholder rights plan for EVR.
“On behalf of Teck’s Board, I thank our shareholders for their
support and consideration, as well as the feedback shared
throughout this process,” said Sheila Murray, Chair of the Board,
Teck. “The Board will focus on incorporating the feedback heard
into a revised value-enhancing separation to maximize value for
shareholders.”
“We received very strong support from shareholders for the goal
of separation, which is to unlock value through creation of a
premier, pure-play base metals company and a world-class
steelmaking coal company. We have also listened and heard the
feedback that some shareholders would prefer a more direct approach
to separation,” said Jonathan Price, CEO. “Our plan going forward
is to pursue a simpler and more direct separation, which is the
best path to unlock the full value of Teck for our
shareholders.”
“In the interim, Teck is poised for value creation; we are
ramping up our flagship QB2 copper project to full production,
advancing our industry-leading pipeline of copper growth projects,
and safely and responsibly optimizing production at our existing
operations,” said Price. “Glencore’s rejected proposals remain a
non-starter, with the same flawed structure and material execution
risks identified by our Board.”
All other matters to be considered at the Meeting remain
unchanged and are further described in the management proxy
circular in respect of the Meeting, which is available under Teck’s
profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov), and on
Teck's website (www.teck.com). The Meeting will proceed as
scheduled at 12 p.m. PDT to consider these other matters.
About TeckAs one of Canada’s
leading mining companies, Teck is committed to responsible mining
and mineral development with major business units focused on
copper, zinc, and steelmaking coal. Copper, zinc and high-quality
steelmaking coal are required for the transition to a low-carbon
world. Headquartered in Vancouver, Canada, Teck’s shares are listed
on the Toronto Stock Exchange under the symbols TECK.A and TECK.B
and the New York Stock Exchange under the symbol TECK. Learn more
about Teck at www.teck.com or follow @TeckResources.
Cautionary Note Regarding Forward-Looking
StatementsThis news release contains certain information
which constitutes “forward-looking statements” and “forward-looking
information” within the meaning of applicable Canadian securities
laws. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as “may”, “should”, “anticipate”,
“expect”, “potential”, “believe”, “intend” or the negative of these
terms and similar expressions. Forward-looking statements in this
news release include, but are not limited to: statements regarding
plans for a separation transaction, including the timing thereof,
and Teck’s expectations regarding the impacts of any such
transaction in terms of creating value for shareholders; statements
regarding ramping up to full production at Teck’s QB2 copper
project and advancement of other copper growth projects; and
statements with respect to Teck’s business and assets and its
strategy going forward. Readers are cautioned not to place undue
reliance on forward-looking statements. Forward-looking statements
involve known and unknown risks and uncertainties, most of which
are beyond the Teck’s control. Several factors could cause actual
results to differ materially from those expressed in the
forward-looking statements, including, but not limited to: actions
taken by Glencore in connection with its unsolicited proposal or
actions taken by other third-parties with respect to Teck and its
assets; unanticipated difficulties at our QB2 project; changes in
currency and exchange rates; receipt of permits for our copper
growth projects and other factors impacting copper and base metals
markets and the global financial system. Additional risks and
uncertainties can be found in our Annual Information Form dated
February 21, 2023 under “Risk Factors”. Should one or more of the
risks or uncertainties underlying these forward-looking statements
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied
by the forward-looking statements.
The forward-looking statements contained herein are made as of
the date of this release and, other than as required by applicable
securities laws, Teck does not assume any obligation to update or
revise them to reflect new events or circumstances. The
forward-looking statements contained in this release are expressly
qualified by this cautionary statement.
Investor Contact:Fraser PhillipsSenior Vice
President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris Stannell Public
Relations Manager604.699.4368chris.stannell@teck.com
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