Mr. Russell Hallbauer reports
TASEKO MINES COMPLETES NOTES OFFERING AND MOVES FORWARD WITH FLORENCE COPPER COMMERCIAL PRODUCTION FACILITY
Taseko Mines Ltd. has completed its offering of $400-million (U.S.) aggregate principal amount of 7 per cent senior secured notes due 2026. A portion of the proceeds will be used to redeem the outstanding $250-million (U.S.) aggregate principal amount of 8.75 per cent senior secured notes due 2022. The remaining proceeds, net of transaction costs and accrued interest, of $131-million (U.S.) are available for capital expenditures, working capital and general corporate purposes.
Stuart McDonald, president of Taseko, commented: "This bond refinancing and upsize has significantly strengthened Taseko's financial position and lowered our cost of capital. We now have a cash balance of approximately $200-million (U.S.) and no significant debt maturities until 2026. With the majority of the required funding for our Florence copper project now in hand, we are moving forward with final design engineering of the commercial production facility as well as procurement of certain critical components.
"Capital requirements for the commercial production facility are estimated at $230-million (U.S.). We continue to advance discussions with potential joint venture partners, but with our strong cash balance and improved Gibraltar cash flows from copper prices that are currently over $3.70 (U.S.) per pound, we have numerous options available to obtain the remaining funding."
Russell Hallbauer, chief executive officer of Taseko, commented: "A commitment to capital discipline is a guiding principle for this organization. We have demonstrated this in the past by completing over $800-million (U.S.) of capital programs at Gibraltar, on time and on budget. Florence is no different. We are designing and engineering the commercial facility to achieve the most accretive results for shareholders. Florence is one of the least-capital-intensive copper production facilities in the world and, when fully ramped up, will produce 40,000 tonnes of high-quality cathode copper annually for the U.S. domestic market. It is a green project, with carbon emissions and water and energy consumption all dramatically lower than a conventional mine, and with C1 operating costs of 90 U.S. cents per pound of copper, it will also be in the lowest quartile of the global cost curve."
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