Major Canadian Mining Company Joins Forces with Arras Minerals to Target Critical Minerals in Kazakhstan

TORONTO, ON / December 7, 2023 /  Arras Minerals (TSX.V: ARK) has announced a new strategic alliance agreement with Teck Resources (TSX: TECK-A), signaling a collaborative effort to concentrate on the exploration of critical minerals within Arras' strategically positioned license package in the Bozshakol-Chingiz Magmatic Arc situated in Pavlodar, Kazakhstan.

Under the terms of the agreement, Teck Resources is set to exclusively fund generative exploration endeavors until 2025. The initial financial commitment for these exploration activities amounts to a substantial US$5 million, slated to be expended before December 31, 2025. This investment is designated for Package "A" and Package "B," encompassing an expansive 1,736 square kilometers, as illustrated in the accompanying map.

Subsequent to the initial phase of generative exploration, Teck Resources will be granted the option to designate up to four specific properties, each totaling 120 square kilometers. In these designated properties, Teck will assume the responsibility of funding exploration expenditures, committing up to US$47.5 million per project. In return for this financial commitment, Teck will secure the right to earn up to a substantial 75% interest in each of the designated projects.

To facilitate the collaboration, Teck Resources has also committed to reimbursing Arras for certain project-related expenses incurred thus far. This reimbursement will be facilitated through a cash payment of US$1 million upon signing, with potential additional payments in the future should Teck choose to progress through subsequent project phases.

For the initial year of the anticipated two-year generative program, Arras will take on the role of manager, overseeing the day-to-day operations.

Arras Minerals President Darren Klinck commented, “We are very pleased to be partnering and working with Teck to advance a portion of our regional license package in Kazakhstan. Following their strategic equity investment into Arras last November, this Agreement provides Teck the option to invest significant funds into critical minerals focused exploration through Arras’ project portfolio and it is a clear indication of the potential that exists in the Bozshakol-Chingiz Magmatic Arc. This initiative in Kazakhstan highlights the emerging opportunities in the country and also demonstrates Kazakhstan’s strong position to be a key player globally as the world seeks to secure the necessary critical minerals required over the coming decades.”

This strategic initiative in Kazakhstan not only underscores the growing prospects within the country but also positions Kazakhstan favorably as a global player in the quest for securing essential critical minerals in the decades to come. The partnership between Arras Minerals and Teck Resources reflects a shared commitment to advancing exploration efforts, contributing to the global supply chain of critical minerals, and capitalizing on the strategic location of Kazakhstan in this regard.

Shares of Arras rose 8.89% on the positive news to close the session at $0.25 on more than 215,000 shares traded.

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