REG - Taseko Mines Limited - COMMITMENT FOR ADDITIONAL FINANCING FOR FLORENCE

Taseko MinesAnnouncement

13/01/2023 14:00

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RNS Number : 7185M  Taseko Mines Limited  13 January 2023

TASEKO MINES RECEIVES COMMITMENT FOR ADDITIONAL FINANCING FOR

FLORENCE COPPER

 

January 13, 2023, Vancouver, BC - Taseko Mines Limited (TSX: TKO; NYSE
American: TGB; LSE: TKO) ("Taseko" or the "Company") is pleased to announce
that it has obtained an underwritten commitment for US$25 million from Banc of
America Leasing & Capital, LLC. Proceeds from this financing will be
available to Taseko to fund costs associated with the Solvent Extraction and
Electrowinning ("SX/EW") plant for the Florence Copper commercial production
facility.

 

"Following the recently announced strategic partnership with Mitsui & Co.
(U.S.A.) Inc. for our Florence Copper project, this additional source of funds
will further strengthen our balance sheet and provide financing flexibility as
we prepare for construction of the project in 2023. We have a long-standing
relationship with Bank of America, a North American leader in equipment
financing for mines and projects directly supporting low-carbon initiatives in
the United States," stated Stuart McDonald, President and CEO of Taseko.

 

"In addition to Florence Copper's strong economics, the project has many
environmental attributes, including low carbon emissions and a low footprint
operation, which are attractive to financial partners. The financing
commitment from Bank of America is a customized solution developed for Taseko,
leveraging the equipment security of our SX/EW plant, since conventional
mining equipment like shovels and haul trucks will not be used at Florence
Copper," added Mr. McDonald.

 

Financing Details

 

The US$25 million of funding will be available for drawdown upon Florence
Copper receiving the final Underground Injection Control permit from the EPA.
The loan will be secured by specific treatment and processing equipment in the
SX/EW plant with an initial term of five years. The facility can be repaid at
any time and carries no financial covenants.

 

For further information on Taseko, please see the Company's website at
www.tasekomines.com or contact:

 

Brian Bergot, Vice President, Investor Relations - 778-373-4533 or toll free
1-877-441-4533

 

Stuart McDonald

President and CEO

 

 

No regulatory authority has approved or disapproved of the information
contained in this news release.

 

CAUTION REGARDING FORWARD-LOOKING INFORMATION

 

This document contains "forward-looking statements" that were based on
Taseko's expectations, estimates and projections as of the dates as of which
those statements were made. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "outlook",
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.

 

Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking statements. These included
but are not limited to:

 

•      uncertainties about the future market price of copper and the
other metals that we produce or may seek to produce;

 

•      changes in general economic conditions, the financial markets,
inflation and interest rates and in the demand and market price for our input
costs, such as diesel fuel, reagents, steel, concrete, electricity and other
forms of energy, mining equipment, and fluctuations in exchange rates,
particularly with respect to the value of the U.S. dollar and Canadian dollar,
and the continued availability of capital and financing;

•
uncertainties resulting from the war in Ukraine, and the accompanying
international response including economic sanctions levied against Russia,
which has disrupted the global economy, created increased volatility in
commodity markets (including oil and gas prices), and disrupted international
trade and financial markets, all of which have an ongoing and uncertain effect
on global economics, supply chains, availability of materials and equipment
and execution timelines for project development;

•      uncertainties about the continuing impact of the novel
coronavirus ("COVID-19") and the response of local,

provincial, state, federal and international governments to the ongoing threat
of COVID-19, on our operations (including our suppliers, customers, supply
chains, employees and contractors) and economic conditions generally including
rising inflation levels and in particular with respect to the demand for
copper and other metals we produce;

•      inherent risks associated with mining operations, including our
current mining operations at Gibraltar, and their potential impact on our
ability to achieve our production estimates;

•      uncertainties as to our ability to control our operating costs,
including inflationary cost pressures at Gibraltar without impacting our
planned copper production;

•      the risk of inadequate insurance or inability to obtain
insurance to cover material mining or operational risks;

•      uncertainties related to the feasibility study for Florence
copper project (the "Florence Copper Project" or "Florence Copper") that
provides estimates of expected or anticipated capital and operating costs,
expenditures and economic returns from this mining project, including the
impact of inflation on the estimated costs related to the construction of the
Florence Copper Project and our other development projects;

•      the risk that the results from our operations of the Florence
Copper production test facility ("PTF") and ongoing engineering work including
updated capital and operating costs will negatively impact our estimates for
current projected economics for commercial operations at Florence Copper;

•      uncertainties related to the accuracy of our estimates of
Mineral Reserves (as defined below), Mineral Resources (as defined below),
production rates and timing of production, future production and future cash
and total costs of production and milling;

•      the risk that we may not be able to expand or replace reserves
as our existing mineral reserves are mined;

•      the availability of, and uncertainties relating to the
development of, additional financing and infrastructure necessary for the
advancement of our development projects, including with respect to our ability
to obtain any remaining construction financing potentially needed to move
forward with commercial operations at Florence Copper;

•      our ability to comply with the extensive governmental regulation
to which our business is subject;

•      uncertainties related to our ability to obtain necessary title,
licenses and permits for our development projects and project delays due to
third party opposition, particularly in respect to Florence Copper that
requires one key regulatory permit from the U.S. Environmental Protection
Agency ("EPA") in order to advance to commercial operations;

•      our ability to deploy strategic capital and award key contracts
to assist with protecting the Florence Copper project execution plan,
mitigating inflation risk and the potential impact of supply chain disruptions
on our construction schedule and ensuring a smooth transition into
construction once the final permit is received from the EPA;

•      uncertainties related to First Nations claims and consultation
issues;

•      our reliance on rail transportation and port terminals for
shipping our copper concentrate production from Gibraltar;

•      uncertainties related to unexpected judicial or regulatory
proceedings;

•      changes in, and the effects of, the laws, regulations and
government policies affecting our exploration and development activities and
mining operations and mine closure and bonding requirements;

•      our dependence solely on our 75% interest in Gibraltar (as
defined below) for revenues and operating cashflows;

•      our ability to collect payments from customers, extend existing
concentrate off-take agreements or enter into new agreements;

•      environmental issues and liabilities associated with mining
including processing and stock piling ore;

•      labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we operate our
mine, industrial accidents, equipment failure or other events or occurrences,
including third party interference that interrupt the production of minerals
in our mine;

•      environmental hazards and risks associated with climate change,
including the potential for damage to infrastructure and stoppages of
operations due to forest fires, flooding, drought, or other natural events in
the vicinity of our operations;

•      litigation risks and the inherent uncertainty of litigation,
including litigation to which Florence Copper could be subject to;

•      our actual costs of reclamation and mine closure may exceed our
current estimates of these liabilities;

•      our ability to meet the financial reclamation security
requirements for the Gibraltar mine and Florence Project;

•      the capital intensive nature of our business both to sustain
current mining operations and to develop any new projects, including Florence
Copper;

•      our reliance upon key management and operating personnel;

•      the competitive environment in which we operate;

•      the effects of forward selling instruments to protect against
fluctuations in copper prices, foreign exchange, interest rates or input costs
such as fuel;

•      the risk of changes in accounting policies and methods we use to
report our financial condition, including uncertainties associated with
critical accounting assumptions and estimates; and Management Discussion and
Analysis ("MD&A"), quarterly reports and material change reports filed
with and furnished to securities regulators, and those risks which are
discussed under the heading "Risk Factors". For further information on Taseko,
investors should review the Company's annual Form 40-F filing with the United
States Securities and Exchange Commission www.sec.gov and home jurisdiction
filings that are available at www.sedar.com, including the "Risk Factors"
included in our Annual Information Form

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