Taseko Mines (TSX:TKO) said today that it is discussion with Sojitz Corporation to acquire its stake in the Gibraltar Mine.
The Gibraltar copper-molybdenum mine, located in south-central British Columbia, the second largest open pit copper mine in Canada. The Gibraltar mine produced 112.3 million pounds of copper and 2.0 million pounds of molybdenum in 2021. Copper recoveries were 82.4% and copper head grades were 0.23%.
Taseko said today that confidential discussions have been ongoing on the potential purchase by Taseko of Sojitz’s 12.5% effective interest in the Gibraltar Mine. Gibraltar is operated through a joint venture owned 75% by Taseko and 25% by Cariboo Copper Corporation.
"Taseko has been in confidential discussions with Sojitz regarding the potential purchase of their interest in Cariboo. No binding agreement has been reached at this time," said Taseko in a news release. "The potential transaction contemplates a modest up-front payment upon closing and additional annual payments over a five-year period. The annual payments would consist of a guaranteed minimum payment and additional contingent payments dependent on Gibraltar copper revenues. The modest initial payment would be funded with available cash on hand, and the subsequent annual payments are expected to be funded from cashflows from the acquired 12.5% interest in Gibraltar."
