Teck Resources has entered into a non-binding memorandum of understanding with Sumitomo Metal Mining (SMM) for the proposed sale of Teck’s 40% interest in the Pogo mine in Alaska for $245 million subject to adjustment for working capital. SMM holds an indirect 51% interest in Pogo and an affiliate of Sumitomo Corp holds a 9% interest in Pogo.

The arrangement with SMM follows receipt by Teck of a third-party offer to acquire Teck’s interest in Pogo on comparable terms. Completion of the transaction is subject to the negotiation and settlement of a definitive agreement and other customary conditions. Teck expects the transaction to close by the end of the second quarter.

The Pogo gold mine lies 145 km southeast of Fairbanks, Alaska and reached commercial production in April 2007. Last year the mine produced 347,000 oz of gold.

At the site there is a permanent camp for 200 people, gold processing facilities, water treatment plant and paste backfill plant/dry-stack tailings facility. The mining methods are cut and fill and drift and fill. The mill uses conventional milling and gravity and CIP technology. The gold from both the gravity and carbon-in-pulp circuits is produced as doré bullion, which is sent to the US for refining and sold to third parties.