06:20 AM EDT, 07/05/2024 (MT Newswires) -- (Updates with details on Teck's use of cash proceeds in the last three paragraphs.)

Teck Resources ( TECK ) said Thursday it has received all regulatory approvals for the sale of its remaining 77% stake in its steelmaking coal business, Elk Valley Resources, to Glencore.

The deal is now expected to be completed on July 11, the company said. Teck expects to receive cash proceeds of $6.9 billion from the sale.

Approximately $2 billion from the cash proceeds will be allocated to repurchasing class B subordinate voting shares, and about $182 million will be distributed through an eligible dividend of 0.50 Canadian dollars ($0.37), the company said.

Additionally, a tender offer announced Thursday for up to $1.25 billion of outstanding public notes is funded through an allocation of $2 billion for a debt reduction program, according to Teck.

Remaining proceeds will be used to fund near-term projects under its copper business, including the Highland Valley Copper Mine Life Extension, Zafranal Project, San Nicolas Project and QB debottlenecking, Teck said. The company estimates the capital cost related to the projects to run from $3.3 billion to $3.6 billion.