Taseko Mines (TSX:TKO; NYSE:TGB) has secured two additional financing deals together worth US$100 million for its Florence copper mine under construction in Arizona.
Tarus Mining Royalty Fund will contribute US$50 million toward a royalty. It will consist of 1.95% of the gross revenue from the sale of all copper from Florence for the life of mine.
Société Générale will provide a US$50 million senior secured debt facility. It will run for five years from the date of closing, with no scheduled principal repayments until the maturity date when any outstanding amounts will be repayable. The facility will have a first lien charge over the Florence assets and an unsecured guarantee from Taseko until completion.
Previous owners spent US $135 million at Florence, and Taseko has spent a further US$165 million since 2014. All major power, transportation, road, and rail infrastructure are in place. The project is built with in situ recovery (ISR) rather than conventional open pit or underground methods. First copper will be produced late next year or in early 2025.
The 43-101 report of March 2023 detailed a 22-year mine life with an annual production capacity of 85 million lb. of copper. When the report was written, there remained US$232 million remaining to be spent to reach commercial production. Life of mine operating costs will be US$0.11 per lb. of copper produced.
Florence has proven and probable reserves of 290 million tonnes grading 0.36% copper.
Learn more about Florence and the Gibraltar copper mine in Canada on www.TasekoMines.com.