VANCOUVER (miningweekly.com) – Base metals miner Taseko Mines has completed an offering of $250-million principal amount of 8.75% senior secured notes due 2022, which it used with a portion of its existing cash balance, to fund the redemption of its senior notes due 2019 and to repay its senior secured credit facility and the related copper call option.
"Our balance sheet is much stronger today and provides the company with the security and flexibility to manage our operations at Gibraltar and continue to advance our pipeline of projects,” president and CEO Russell Hallbauer said.
“We felt it was prudent to use a portion of our growing cash balance, from a strong operating performance and the recent silver stream sale, to reduce our overall long-term debt."
The company used the $247.5-million in proceeds from the notes offering and $54.5-million of cash to fund the redemption of its outstanding senior notes due 2019 for $203.8-million including accrued interest, to repay its senior secured credit facility for $79.4-million including accrued interest, to buy out a copper call option held by the credit facility lender for $11.9-million and for estimated transaction costs of $6.9-million.
As at March 31, Taseko had about C$384-million in debt on the books.