Teck Resources Limited (NYSE: TECK) inches up in early session on Tuesday as the company announces that the management proxy circular and supporting documents for its annual and extraordinary shareholder meeting scheduled for April 26, 2023 have been submitted. Teck is asking for approval from shareholders at the Meeting, among other things, for the previously announced reorganization of Teck’s business to split Teck into two independent, publicly-traded companies: Teck Metals Corp. and Elk Valley Resources Ltd., as well as the previously announced proposal to introduce a six-year sunset for the multiple voting rights attached to the Class A common shares of Teck. All of these are outlined in the Circular.

CEO of firm Jonathan Price stated that Teck has obtained the necessary governmental clearances to move forward with our proposed split and establish two top-tier businesses dedicated to supplying the key resources the world needs in an ethical manner. The two companies’ planned separation is in the best interests of Teck and all of its stakeholders because it will give investors a clear choice between a leading copper growth company and a pure-play, high margin coal company that makes steel. It will also open up more opportunities to increase value for shareholders in the future.

According to Sheila Murray, Teck’s chair of the board, “This transaction is the outcome of a thorough evaluation done by our Board and is the greatest road ahead to fulfilling Teck’s full potential.” This division “positions both firms for even greater success, allows shareholders to optimize their exposure to the various underlying commodities, and optimizes long-term value without restricting future optionality.”

Moreover, Teck disclosed today that the Separation and the Dual Class Amendment have been granted interim orders by the Supreme Court of British Columbia. The Separation and the Dual Class Amendment Meeting may be called and held in accordance with the Interim Orders. The circular has copies of the interim orders attached.

The Teck Board of Directors urges shareholders to approve both the Separation and the Dual Class Amendment.

If both the Separation and the Dual Class Amendment are passed, the Dual Class Amendment is anticipated to take place before the implementation of the Separation. The Separation and the Dual Class Amendment are not dependent upon one another.