Taseko Increases Stake in Gibraltar Mine in British Columbia, Canada
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Taseko Mines Limited has entered into a definitive agreement to acquire an additional 12.5 percent interest in the Gibraltar Mine from Sojitz Corporation.
Gibraltar is operated through a joint venture which is owned 75 percent by Taseko and 25 percent by Cariboo Copper Corporation. Under the terms of the agreement, Taseko will acquire Sojitz’s 50 percent interest in Cariboo, and will then hold an effective 87.5 percent interest in the Gibraltar Mine.
The acquisition price consists of a minimum amount of C$60 million payable over a five-year period and potential contingent payments depending on Gibraltar mine revenues and copper prices over the next five years. An initial C$10 million will be paid to Sojitz upon closing and the remaining minimum amount will be paid in C$10 million annual installments over the next five years.
“This is a logical and beneficial transaction for Taseko, providing immediate 17 percent growth in our attributable copper production and earnings from mine operations. Gibraltar is a high-quality asset with a long mine life in an excellent jurisdiction,” said Stuart McDonald, president & CEO of Taseko.
“The transaction is immediately accretive to Taseko and the deferred payment structure allows us to focus our financial capacity on the construction of the Florence Copper project which we expect to commence later this year,” added McDonald.
“Sojitz has benefited from its partnership with Taseko for more than a decade, and we continue to view the Gibraltar mine as a valuable long-life asset with a proven operating team. This transaction is consistent with our division’s strategy to transition towards metal recycling and other midstream processing businesses,” said Osamu Matsuura, executive officer and COO of Sojitz Metals, Mineral Resources and Recycling Division.
Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur in a timely manner.
About Taseko
Taseko is focused on the operation and development of copper 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 mine in Canada. Taseko’s Florence Copper Project in Arizona is a near-term growth project, which will nearly double the company’s annual copper production. Construction of Florence Copper is expected to commence in 2023. Taseko’s Yellowhead Copper Project, New Prosperity Gold-Copper Project, and Aley Niobium 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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