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Taseko moves ahead with Florence project

12th February 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Dual-listed Taseko Mines is moving forward with final design engineering of the commercial production facility at its Florence copper project, in Arizona, announcing this week that it has secured the majority of the funding needed for the project.

Taseko has completed an offering of $400-million of 7.0% senior secured notes due 2026. A portion of the proceeds will be used to redeem the outstanding $250-million 8.75% senior secured notes due 2022 and the remaining proceeds, net of transaction costs and accrued interest, of $131-million, will be used for the project.

The bond refinancing and upsize has significantly strengthened Taseko’s financial position and lowered its cost of capital. The company says it has a cash balance of about $200-million and no significant debt maturities until 2026.

“With the majority of the required funding for our Florence copper project now in hand, we are moving forward with final design engineering of the commercial production facility as well as procurement of certain critical components,” says president Stuart McDonald.

The capital requirements for the commercial production facility are estimated at $230-million.

“We continue to advance discussions with potential joint venture partners, but with our strong cash balance and improved Gibraltar cash flows from copper prices that are currently over $3.70 per pound, we have numerous options available to obtain the remaining funding.”

When fully ramped up, Florence will produce 40 000 t/y of high-quality cathode copper.

Edited by Creamer Media Reporter

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