Mining News
Taseko inks definitive agreement to acquire 12.5% interest in Gibraltar copper mine
(Kitco News) - Taseko Mines (TSX: TKO) announced today that it has entered into a definitive agreement to acquire an additional 12.5% interest in the Gibraltar mine from Sojitz Corporation.
The company said 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 instalments over the next five years," the company said in a statement.
Taseko added that total contingent payments cannot exceed C$57 million over the five-year period, limiting the acquisition cost to a maximum of C$117 million.
Gibraltar is operated through a joint venture which is owned 75% by Taseko and 25% by Cariboo Copper Corporation. Under the terms of the agreement, Taseko will acquire Sojitz’s 50% interest in Cariboo, and will then hold an effective 87.5% interest in the Gibraltar mine.
President and CEO Stuart McDonald said, "This is a logical and beneficial transaction for Taseko, providing immediate 17% 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."
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