Teck Resources updates separation transaction terms

Teck Resources announced changes to allow for an earlier full separation of Teck Metals and Elk Valley Resources and to maximize free cash flow available to be returned to shareholders, following approval of the separation by shareholders on April 26, 2023. As described in Teck’s recent management proxy circular dated March 23, 2023, the separation provides Teck Metals with continued access to steelmaking coal cash flows for a transition period, through ownership of preferred shares in the capital of EVR and a royalty. Following extensive consultation with shareholders, Teck is making changes to the separation proposal, including reducing the minimum term of the royalty paid by EVR to Teck Metals from approximately 5.5 years to 3 years, providing a potentially shorter path to full separation of Teck Metals and EVR, and putting in place measures to cap annual capital spending by EVR at $1.3 billion, with exceptions for social and regulatory requirements. "Teck management and the Board have had extensive shareholder engagement and based on this feedback, we have decided to make these changes to allow for an earlier full separation and enhance alignment between EVR and Teck Metals," said Jonathan Price, CEO, Teck. "We believe these amendments will enhance certainty and further protect the interests of Teck Metals shareholders."