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Teck Resources to spin off steelmaking coal business to shareholders

On Feb. 21, 2023, Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) announced the reorganization of its business (the Separation).

The Separation will create two world-class resource companies and provide investors with choice for allocating investment between two businesses with different commodity fundamentals and value propositions.

BLG represented POSCO Canada Limited and its affiliates in connection with the restructuring of their interest in the Greenhills and Elk Valley coal mines in southeastern British Columbia in exchange for common and preferred shares of Elk Valley Resources Inc. (EVR) and a gross revenue royalty on steelmaking coal. This transaction is part of the larger restructuring of the business of POSCAN’s long-time commercial partner, Teck Resources Limited, into two independent, publicly-listed companies: Teck Metals Corp. and EVR.

BLG’s team was comprised of Sean Muggah, Fred R. Pletcher, Ryan Laity, Sal Pimentel and Ashley Wong (Mining and Corporate), Randy Morphy, Robert Biggar and Siwei Chen (Tax).