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Taseko Mines Limited (TSX:TKO) (NYSE:TGB) (LSE: TKO) ("Taseko" or the "Company") is pleased to provide an update on financing and construction progress at its Florence Copper project.
On January 15, 2024, the Company signed a definitive agreement with Taurus Mining Royalty Fund L.P. ("Taurus") for the previously announced sale of a US$50 million royalty. The royalty will be for 1.95% of the gross revenue from the sale of all copper from Florence Copper. Funding of the US$50 million is subject to customary closing conditions, and proceeds are expected to be received in early February. The Company also expects to drawdown the first US$10 million of the US$50 million Mitsui financing later this month. With these financings in hand, construction activities at Florence will be accelerating.
To date, site activities have focussed on site preparations, earthworks and civil work for the commercial wellfield. The initial drilling contracts are now being finalized, with drilling of the commercial facility wellfield to commence in February. Additionally, the Company expects to sign a fixed-price contract with TIC Kiewit as general contractor for construction of the SX/EW plant and associated surface infrastructure. All the major plant components are onsite and the build will begin in the second quarter of this year.
Stuart McDonald, President & CEO of Taseko, commented, "Signing of the Taurus royalty agreement is another positive milestone for the project. We are excited to be ramping up construction activities at Florence Copper, which will soon be a major new supplier of low-carbon copper cathode to the US market.
Site preparations and civil work are well advanced, and we're looking forward to commencing wellfield drilling, with four rigs planned to be onsite initially. Construction of the SX/EW plant and other infrastructure represents a significant portion of the remaining project spend, and a fixed-price contract with TIC Kiewit will reduce inflationary risks, as Arizona continues to be a very active construction market. Our early work on detailed engineering and procurement of long-lead items has significantly de-risked the construction schedule and we're tracking towards first copper production in the fourth quarter of 2025. We're taking a disciplined approach to the buildout of the commercial facility at Florence, while our existing operations at the Gibraltar Mine continue to generate good cashflows in a strong copper price environment."
"As an existing copper producer, Taseko is in an enviable and unique position with near-term, low cost production growth coming from a fully-permitted and environmentally beneficial copper project. With copper now added to the US Department of Energy's critical materials list, market interest in our project and future copper production remains strong," added Mr. McDonald.
Stuart McDonald
President and CEO
No regulatory authority has approved or disapproved of the information contained in this news release.
