- Taseko Mines (TKO) is acquiring an additional 12.5-percent stake in the Gibraltar Mine in British Columbia
- The copper-molybdenum mine in south-central British Columbia is the second-largest open-pit copper mine in Canada
- Taseko is now acquiring Tokyo-based Sojitz Corp’s 50-percent interest in Cariboo, effectively giving it now an 87.5-percent stake in the project
- The all-cash deal is worth a minimum amount of $60 million, with an initial $ 10 million payment and further payments tied to copper prices and mine production
- Taseko Mines is up 2.3 percent, trading at $2.22 at 10:55 a.m. EST
Taseko Mines (TKO) is acquiring an additional 12.5-percent stake in the Gibraltar Mine in British Columbia.
The copper-molybdenum mine in south-central British Columbia is the second-largest open-pit copper mine in Canada.
The all-cash deal is worth a minimum amount of $60 million, with an initial $ 10 million payment. Subsequent payments are contingent on 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 instalments over the next five years.
Prior to the deal, Vancouver-based Taseko already owned a 75-percent interest in the mine. The project is operated as a joint venture with Cariboo Copper, which owns the remaining 25 percent.
Taseko is now acquiring Tokyo-based Sojitz Corp’s 50-percent interest in Cariboo, effectively giving it now an 87.5-percent stake in the project.
“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. 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,” said Taseko President and CEO Stuart McDonald.
Taseko Mines Ltd. (TKO) is up 2.3 percent, trading at $2.22 at 10:55 a.m. EST.