June 21st, 2024

Taseko Mines to increase its stake in the Gibraltar copper mine in B.C.

By The Canadian Press on February 22, 2023.

The offices of Taseko Mines Ltd. are pictured in Vancouver, B.C., on Thursday November 25, 2010. THE CANADIAN PRESS/Darryl Dyck

VANCOUVER – Taseko Mines Ltd. says it has signed a deal to increase its stake in its Gibraltar copper mine in B.C. in an agreement worth at least $60 million.

Under the terms of the deal, Taseko will acquire Sojitz Corp.’s 50 per cent stake in Cariboo Copper Corp. which holds a 25 per cent stake in the mine.

Cariboo’s other shareholders are Dowa Metals & Mining Co. Ltd with 25 per cent and Furukawa Co. Ltd. with 25 per cent.

The acquisition will give Taseko, which already owns a 75 per cent stake in Gibraltar, an effective 87.5 per cent interest.

In exchange for Sojitz’s stake, Taseko has agreed to make an initial minimum payment of $10 million due on closing and annual payments of $10 million over the next five years.

The company will also make contingent payments for five years depending on the average copper price. The total contingent payments cannot exceed $57 million over the five-year period.

This report by The Canadian Press was first published Feb. 22, 2023.

Companies in this story: (TSX:TKO)

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