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TORONTO (miningweekly.com) – Vancouver-based Taseko Mines plans to sell a 25% stake in its Gibraltar copper/molybdenum mine, in British Columbia, to Japan's Sojitz Corporation, for about C$180-million, the firm announced on Monday.
The companies have signed a letter of intent to sign a joint-venture agreement on the mine by early 2010.
Taseko will retain the other 75% of Gibraltar and will remain the operator of the asset.
“The formation of this joint venture with a prominent Japanese company is an important step for Taseko, advancing our business plan that includes establishing strategic alliances,” Taseko CEO Russell Hallbauer said.
The sale will help Taseko finance its Prosperity gold/copper project, also in British Columbia, where it recently increased the mineral reserves by 70%.
“With the closing of this transaction, we will have a significant portion of the equity requirement for the construction of a new mine at the Prosperity property,” Hallbauer said.
Diversified trader Sojitz already has interests in British Columbia, including a 25% stake in Thompson Creek Metals' Endako molybdenum mine in the province.
The Gibraltar transaction is subject to due diligence by Sojitz and the negotiation and execution of binding agreements, Taseko said.
The letter of intent provides for exclusivity of negotiations and a break fee payable by Taseko.
Shares in the company jumped 13,44% on Monday, to C$3,63 apiece by 13:18 in Toronto.
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