REG-Taseko Mines Limited: TASEKO ENTERS PARTNERSHIP TO DEVELOP FLORENCE COPPER

Taseko MinesAnnouncement

20/12/2022 13:45

TASEKO AND MITSUI ENTER STRATEGIC PARTNERSHIP TO DEVELOP FLORENCE COPPER

VANCOUVER, BC, Dec. 20, 2022 /CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE
American: TGB) (LSE: TKO) ("Taseko" or the "Company") is pleased to announce
it has signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a
strategic partnership to develop the Company's Florence Copper project (the
"Project"), located in Arizona USA. 

Mitsui has committed to an initial investment of US$50 million, with proceeds
to be used for construction of the commercial production facility.  The
initial investment will be in the form of a copper stream agreement (the
"Copper Stream") on 2.67% of the copper produced at Florence Copper.

In addition, Mitsui has the option to invest an additional US$50 million (for
a total investment of US$100 million) for a 10% equity interest in Florence
Copper (the "Equity Option"). The Equity Option is exercisable by Mitsui
within a three-year period following completion of construction of the
commercial production facility.  If Mitsui elects to exercise its Equity
Option the Copper Stream will terminate.

As part of the arrangement, Taseko and Mitsui have entered into an offtake
contract for 81% of the copper cathode produced at Florence during the initial
years of production. The parties intend to use this period to develop premium
sales channels for 'green copper' in the United States, leveraging Mitsui's
existing US cathode trading business and the unique environmental benefits of
Florence Copper, which is expected to be the lowest carbon- and
energy-intensity copper producer in North America. 

Stuart McDonald, President & CEO of Taseko, stated, "This agreement with
Mitsui establishes a strategic partnership with a leading international
company. Mitsui's investment will complement Taseko's financing requirements
and construction timeline and advance our goal of ensuring the copper produced
at Florence is recognized for its unique low-carbon profile that will
advantage US manufacturers and consumers.  In the future, Taseko and Mitsui
will collectively evaluate additional investments toward establishing Florence
Copper as a zero-carbon copper producer (Scope 1 and 2)."

Sayu Ueno, President & CEO of Mitsui & Co. (U.S.A.), commented, "We are
excited to partner with Taseko and its unique, low-carbon and low-impact
Florence Copper project. When in production, Florence Copper will
significantly expand our US cathode trading business, while providing an
environmentally sound, domestically produced product that can be marketed on
the basis of its low-carbon advantages.  We believe Florence Copper will be a
preferred source of 'made-in-the-US' copper for many end users in North
America."

Transaction Details

Under the terms of the initial US$50 million Copper Stream agreement, Mitsui's
first deposit payment of US$10 million will be available for drawdown after
receipt of Florence Copper's Underground Injection Control permit, with
additional US$10 million instalments available each quarter thereafter to fund
project construction.  Mitsui will receive 2.67% of the copper metal produced
at Florence and pay a delivery price equal to 25% of the market price of
copper delivered under the contract.

If Mitsui elects to exercise its Equity Option and invest an additional US$50
million in the Project, these additional funds and the Copper Stream will be
converted into a 10% equity interest in Florence Copper.  At that time, the
initial offtake agreement will cease and be replaced with a marketing agency
agreement.

If the Copper Stream is not converted into an equity interest Taseko will have
the right to buy-back 100% of the Copper Stream, otherwise, it will terminate
when 40 million pounds of copper have been delivered under the agreement.
 Mitsui's offtake entitlement would also reduce to 30% until the Copper
Stream deposit has been reduced to nil. 

About Mitsui & Co.
With a long history in the United States, Mitsui & Co. (U.S.A.), Inc. ("Mitsui
USA") is a wholly owned subsidiary of Mitsui & Co., Ltd., Tokyo, Japan, one of
the most diversified and comprehensive trading, investment, and service
enterprises in the world. Mitsui & Co. pursues "360° business innovation"
that ranges from product sales, worldwide logistics and financing, through to
the development of major international infrastructure and other projects. More
information on Mitsui USA may be found at www.mitsui.com/us.

About Taseko
Taseko is focused on the operation and development of copper mines in North
America. Headquartered in Vancouver, Canada, Taseko is the owner (75%) and
operator of the Gibraltar Mine, the second largest open pit copper mine in
Canada.  Taseko's Florence Copper Project in Arizona is a near-term growth
project, which will nearly double the Company's annual copper production.
Construction of Florence Copper is expected to commence in 2023. Taseko's
Yellowhead Copper Project, New Prosperity Gold-Copper Project and Aley Niobium
Project are all advanced staged projects which provide the Company with a
diverse commodity pipeline.

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.

For further information on Taseko, 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



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