Taseko Mines Limited signed a $50 million revolving credit facility, which was arranged and fully underwritten by National Bank of Canada and will be available for working capital and general corporate purposes.
The facility has an initial tenor of 42 months and is extendable annually thereafter. The facility will be secured by a first lien charge against Taseko Mines Limited’s rights under its Gibraltar joint venture as well as its shares of Gibraltar Mines, Curis Holdings (Canada) and Florence Holdings. The facility includes financial and other covenants commensurate with a corporate revolving credit facility of this nature. The facility is expected to close this week upon satisfaction of customary closing conditions.
“At current copper prices, we expect to fully fund construction of the Florence Copper Project with cashflow from Gibraltar operations and our existing cash balance,” Stuart McDonald, president and CEO of Taseko Mines Limited, said. “While we have no intention of drawing any funds from the new facility on closing, it will further improve our already strong balance sheet and provide us with additional flexibility as we advance Florence towards production, making it America’s newest source of low-carbon copper.”
Additionally, the U.S. Environmental Protection Agency advised Taseko Mines Limited that it intends to send a draft underground injection control (UIC) permit to the company in mid-October and provide the company with a two-week review period before the draft permit is formally issued, commencing the public comment period.
“The UIC permit is the final permitting step required prior to construction of Florence Copper, and the EPA continues to make progress towards finalizing the permit with no significant issues raised to-date,” McDonald said. “Receipt of the draft permit will represent another significant step towards Florence Copper being fully permitted and ready for construction.”
