$50m facility gives Taseko more flexibility
TSX- and NYSE-listed Taseko Mines on Tuesday announced a $50-million revolving credit facility, which would be available for working capital and general corporate purposes.
CEO Stuart McDonald said that Taseko did not intend to draw any funds from the new facility on closing, but that it would improve its balance sheet and provide it with additional flexibility as it advanced the Florence copper project, in the US, towards production.
“At current copper prices, we expect to fully fund construction of the Florence copper project with cashflow from Gibraltar operations and our existing cash balance,” he said.
Taseko is still waiting for an underground injection control (UIC) permit for the Florence project – the final permitting step required before construction could start.
McDonald said that it had been advised that the US Environmental Protection Agency (EPA) would send the company a draft UIC permit by mid-October for a two-week review period, before a draft permit would be formally issued, starting a public comment period.
"The UIC permit is the final permitting step required prior to construction of Florence Copper, and the EPA continues to make progress towards finalising the permit with no significant issues raised to-date. Receipt of the draft permit will represent another significant step towards Florence Copper being fully permitted and ready for construction."
The Florence deposit contains 2.5-billion pounds of copper and Taseko plans to produce an average of 55-million pounds of copper a year for the first six years and 85-million pounds a year for the 20-year life-of-mine.
At a conservative copper price of $3/lb, Florence would generate an aftertax internal rate of return of 37% and an aftertax net present value of $680-million, at a 7% discount, with a 2.5-year payback period.
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