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Be the first with the news that moves the market- Taseko Mines Limited (TKO) has signed agreements with Mitsui & Co. to jointly develop the Florence Copper Project in Arizona
- An offtake contract was signed for 81 per cent of the copper cathode produced at the Florence Copper Project during the initial years of production
- Mitsui will pay a US$10 million deposit and invest an initial US$50 million to construct a commercial production facility
- The initial investment will form a copper stream agreement with 2.67 per cent of copper production going to Mitsui
- If the copper stream does not convert to an equity interest, Taseko may buy it all back
- Taseko Mines Limited (TKO) is up 22.22 per cent trading at $2.09 per share as of 2:15 p.m. EST
Taseko Mines Limited (TKO) has signed agreements with U.S. company Mitsui & Co. to jointly develop the Florence Copper Project in Arizona.
Taseko and Mitsui have signed an offtake contract for 81 per cent of the copper cathode produced at the Florence Copper Project during the initial years of production.
Mitsui’s first deposit payment of US$10 million will be available for drawdown after receiving the project’s underground injection control permit, with an additional US$10 million instalments available each quarter thereafter to fund project construction.
Mitsui has agreed to an initial investment of US$50 million, with proceeds to be used for the construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement for 2.67 per cent of the copper produced from the project.
In addition, Taseko has given Mitsui the option to invest an additional US$50 million for a 10 per cent equity interest in the project. The option can be exercised by Mitsui within a three-year period after the commercial production facility’s construction has been finished. If exercised, then Mitsui’s copper stream agreement will terminate.
If the copper stream agreement is not converted into an equity interest, then Taseko will have the right to buy back 100 per cent of the copper stream. Otherwise, it will terminate when 40 million pounds of copper have been delivered under the agreement.
Taseko Mines Limited (TKO) is up 22.22 per cent trading at $2.09 per share as of 2:15 p.m. EST.
