VANCOUVER, BC, Dec. 20, 2022 /PRNewswire/ – Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) (“Taseko” or the “Company”) is pleased to announce it has signed agreements with Mitsui & Co. (U.S.A.) Inc. (“Mitsui”) to form a strategic partnership to develop the Company’s Florence Copper project (the “Project”), located in Arizona USA.
Mitsui has committed to an initial investment of US$50 million, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement (the “Copper Stream”) on 2.67% of the copper produced at Florence Copper.
In addition, 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”). 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.
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…
