Taseko Completes US$70 Million Secured Credit Facility
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Taseko Mines Limited has entered into a US$70 million senior secured credit facility agreement with an affiliate of RK Mine Finance (Red Kite).
“In addition to repaying the May 2016 loan, this facility strengthens our balance sheet with approximately US$40 million of additional liquidity in a time of extremely challenging financial markets. It is also a significant endorsement of Taseko’s strategy and its assets by a major global copper financer. This credit facility also protects Taseko’s cash flow because there are no principal or interest payments due during the three-year term,” said Russell Hallbauer, president and CEO of Taseko.
“We pursued a number of different options to address the 2016 loan maturity and, in the end, it was Red Kite that brought forward the most attractive financing option, which comes with a cost of capital below 10 percent at current market prices, and no off-take obligations. A copper call option and Taseko warrants, also part of the credit facility, allowed Taseko to negotiate a favorable interest rate. Red Kite and Taseko will benefit from a strengthening copper market, which is aligned with Taseko’s shareholders’ interests who will also benefit from improved financial performance as copper prices increase,” added Hallbauer.
The credit facility consists of an initial tranche of US$31 million to refinance the company’s existing secured loan with Red Kite, which matures in May 2016, and the remaining US$39 million will be available to the company for general corporate purposes.
About Red Kite
RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry from offices in Bermuda, Hong Kong, London, New York, and Shanghai. Investors in Red Kite funds include college endowments, foundations, family offices, pensions, and other institutional investors.
To stop by Red Kite’s website, CLICK HERE
About Taseko
Taseko is focused on the operation and development of mines in North America. Headquartered in Vancouver, Canada, Taseko is the owner (75 percent) and operator of the Gibraltar Mine, the second largest open pit copper-molybdenum mine in Canada. Taseko’s Aley Niobium Project, Florence Copper Project, and New Prosperity Gold-Copper Project are all advanced staged projects which provide the company with a diverse commodity pipeline.
To stop by Taseko’s website, CLICK HERE
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