Teck joins Centerra as 9.9% shareholder in Metal Energy

[Ben Graham]

Teck Resources (TSX: TECK.A/TECK.B) has acquired a 9.9% equity stake in Metal Energy (TSXV: MERG) following its participation in the critical mineral explorer’s latest financing round.

On Friday, Toronto-based Metal Energy announced Teck’s acquisition of approximately 4.44 million flow-through shares at C$0.73 per share and 6.2 million common shares at C$0.45 per share.

Teck’s investment mirrors that of Centerra Gold (TSX: CG), which bought the other half of allotted shares for a 9.9% stake, as announced by the companies last month.

Stephen Stewart, chairman of Metal Energy, welcomed the addition of Teck as its second strategic investor. “Having one major mining company already on our register provides meaningful validation, adding a second reinforces that confidence,” he stated in a press release.

Shares of Metal Energy surged by a quarter to a new 52-week high of C$0.80 on Friday, taking its market capitalization to C$23 million ($16.7 million). Since announcing Centerra’s investment, the stock has gained by about 60%.

As disclosed in a November news release, Metal Energy will use the proceeds of the financing to advance its exploration of the NIV copper-gold-molybdenum project. Located in the Toodoggone district of north-central British Columbia, the NIV property contains two main claim blocks covering a total area of 215 sq. km.

The project is fully permitted and has several drill-ready targets identified. The proposed drilling program is set to begin next year, testing the heart of the porphyry system for the first time.