Teck and Nova strike a deal at GaloreNovaGold and Teck Cominco have agreed that Teck will pay for theentire cost of their shared Galore Creek Project for a specified period.
Thecompanies decided that Teck will provide all of the funding for GaloreCreek until the price tag hits $60 million (this will include Teck’sprevious contributions).
Aslong as Teck is funding the project exclusively, the company will havea casting vote on the partnership’s management committee, meaning itwill have input into when, where, and how the money is spent.
In2008, at Galore Creek, NovaGold conducted an engineering review anddecided that the project could be expanded. The construction time willbe shorter, they said, and risks associated with its development willbe lower than expected.
Thecompany expects the mine to produce 350 to 700 million pounds ofcopper, 250,000 to 500,000 ounces of gold, and 3 to 5 million pounds ofsilver in the first five to 10 years of operation.
NovaGoldalso said the company will continue to work on road links to Highway37. The B.C. government recently agreed to fund the electrification ofthe highway, which will be a major benefit to the mining