PIPE Transactions In Canada: Teck Resources And China Investment Corp.

The first half of 2009 saw continued popularity of private investment in public equity (PIPE) transactions. The momentum has been driven primarily by producers and developers needing access to capital, by customers seeking to secure a strategic source of mineral resources and by strategic players interested in obtaining controlling interests in resource firms at attractive prices. We expect the popularity of PIPE transactions to continue, particularly for mining companies needing to repair their balance sheets in the wake of the global financial crisis and lower commodity prices and for those with significant current and unfunded short-term project development obligations.

Torys recently acted for China Investment Corp. (CIC) on its US$1.5 billion PIPE investment in Teck Resources, a company listed on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange. The transaction, which is the largest completed Chinese investment in Canada to date, gives CIC an