Taseko Mines has entered into a $70 million senior secured credit facility agreement with an affiliate of RK Mine Finance (Red Kite), one of the world’s largest metal merchants.

“In addition to repaying the May 2016 loan, this facility strengthens our balance sheet with approximately $40 million of additional liquidity in a time of extremely challenging financial markets. It is also a significant endorsement of Taseko’s strategy and its assets by a major global copper financer,” said Russell Hallbauer, president and CEO of Vancouver Canada-based Taseko. “This credit facility also protects Taseko’s cash flow because there are no principal or interest payments due during the three-year term.”

The facility consists of an initial tranche of $31 million to refinance the company’s existing secured loan with Red Kite, which matures in May 2016 and the remaining $39 million will be available to the company for general corporate purposes. Amounts drawn under the credit facility will accrue interest at a rate of LIBOR +7.5% (subject to a minimum LIBOR of 1%), with principal and interest due at maturity, March 29, 2019.

The loan is repayable without penalty at any time prior to maturity and does not impose any off-take obligations on Taseko.

The credit facility is secured by a first priority charge over Taseko’s assets, including the company’s 75% joint venture interest in the Gibraltar Mine, shares in all material subsidiaries and the Florence Copper Project assets.

RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group

Taseko is focused on the operation and development of mines in North America.