Teck Cominco Ltd. (TSX,NYSE:TCK) will acquire a 50% interest in 7,147 acres of the Athabasca oilsands from UTS Energy Corp. for a net price of roughly $40 million.
As part of the deal with UTS, Teck Cominco will pay $120 million of the purchase price for the Lease 14 area located about 20 kilometres north of Syncrude's Aurora North operations. But UTS will pay Teck about $80 million in connection with other acquisitions UTS has made with the Vancouver mining giant. The result will be in a net price of $40 million for Lease 14.
UTS and Teck Cominco jointly own roughly 258,000 acres in the Athabasca region.
Teck Cominco share price range during the past week: between $84.90 and $88.05; 52-week high: $95.16; 52-week low: $57.55.