Taseko operated a production test facility at Florence for 18 months.
Vancouver-based Taseko Mines has received approvals for $100-million in additional financing for the Florence project, which will supply 85-million pounds a year of copper when in full production.
Taurus Mining Royalty Fund will provide a $50-million royalty and Societe Generale approved a $50-million senior secured debt facility.
Upon closing and satisfaction of conditions precedent, the proceeds from these project level financings will be available to fund the construction and development of the commercial production facility at Florence, in Arizona.
“The Taurus royalty and the project loan facility from Societe Generale complement the previously announced commitments from Mitsui and Bank of America. A total of $175-million from these four well-regarded industry participants is a strong endorsement of Florence Copper’s technical merits, attractive economics, and favourable environmental attributes,” said president and CEO Stuart McDonald.
Taseko has recently wrapped up permitting for the copper project and with these new financings set to close in the coming months, the company is preparing to start building the commercial facility at Florence.
The company operated a production test facility at Florence for 18 months, which provided it with an opportunity to test operational controls and strategies that would be applied in future commercial operations.
The project has a net present value of $930-million, an internal rate of return of 47% and a payback period of 2.6 years.
Over its 22-year mine life, Florence will produce 1.5-billion pounds of copper at an operating cost of $1.11/lb of copper.