Canadian-based Taseko Mines has entered into a definitive agreement to acquire the remaining 12.5% interest in the Gibraltar copper-molybdenum mine in British Columbia from Dowa Metals & Mining and Furukawa.
Under the terms of the deal, Taseko will acquire Dowa and Furukawa’s shares in Cariboo Copper for a minimum of C$117 million payable over a period of 10 years, plus potential contingent payments. An initial $5 million will be paid to the two companies shortly following closing.
“We are happy to once again own 100% of the Gibraltar mine, our foundational asset, which will continue to generate strong returns for the company for many years to come,” said Taseko President and CEO Stuart McDonald.
“This acquisition provides 14% growth in our attributable copper production, and is immediately cashflow accretive as we advance construction at our Florence copper project [in Arizona].”
McDonald also noted that Taseko will retain full marketing rights for 100% of Gibraltar’s concentrate offtake “providing potential cost savings and longer-term strategic benefits as we continue to develop our North American copper production profile.”
Gibraltar is the second largest open-pit copper mine in Canada.
Source: Taseko Mines