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Taseko and Mitsui enter strategic partnership to develop Florence Copper

Kitco Media
By Vladimir Basov
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(Kitco News) - On Tuesday, Taseko Mines (TSX: TKO; NYSE: TGB) announced that it has signed agreements with Mitsui & Co. (U.S.A.) to form a strategic partnership to develop the company's Florence Copper project, located in Arizona USA.

The company said that Mitsui has committed to an initial investment of US$50 million, with proceeds to be used for construction of the commercial production facility, adding that the initial investment will be in the form of a copper stream agreement on 2.67% of the copper produced at Florence Copper.

Furthermore, Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) for a 10% equity interest in Florence Copper.

"The equity option is exercisable by Mitsui within a three-year period following completion of construction of the commercial production facility. If Mitsui elects to exercise its equity option, the copper stream will terminate," the company said in a statement.

According to a press release, as part of the arrangement, Taseko and Mitsui have entered into an offtake contract for 81% of the copper cathode produced at Florence during the initial years of production.

"The parties intend to use this period to develop premium sales channels for ‘green copper' in the United States, leveraging Mitsui's existing US cathode trading business and the unique environmental benefits of Florence Copper, which is expected to be the lowest carbon- and energy-intensity copper producer in North America," Taseko added.

Mitsui & Co. (U.S.A.) is a wholly owned subsidiary of Mitsui & Co., Tokyo, Japan, one of the most diversified and comprehensive trading, investment, and service enterprises in the world.

Taseko is focused on the operation and development of copper mines in North America. 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.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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