Taseko has been in confidential discussions with Sojitz regarding the potential purchase of their interest in Cariboo
Taseko acquires 12.5% Interest in Gibraltar Mine. (Credit: nettetal10 from Pixabay)
Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the “Company”) is responding to a statement made by Sojitz Corporation (“Sojitz”) on the potential purchase by Taseko of Sojitz’s 12.5% effective interest in the Gibraltar Mine (“Gibraltar”).Gibraltar is operated through a joint venture owned 75% by Taseko and 25% by Cariboo Copper Corporation (“Cariboo”).Sojitz owns 50% of Cariboo.
Taseko has been in confidential discussions with Sojitz regarding the potential purchase of their interest in Cariboo. No binding agreement has been reached at this time. The potential transaction contemplates a modest up-front payment upon closing and additional annual payments over a five-year period. The annual payments would consist of a guaranteed minimum payment and additional contingent payments dependent on Gibraltar copper revenues. The modest initial payment would be funded with available cash on hand, and the subsequent annual payments are expected to be funded from cashflows from the acquired 12.5% interest in Gibraltar.
Definitive agreements have not been finalized or signed, and the transaction remains subject to various board, regulatory and other approvals. There is no assurance at this time that a binding transaction will be entered into or completed.
Source: Company Press Release