Taseko to increase stake in BC’s Gibraltar copper mine – Business News

Taseko to increase stake

The Canadian Press – | Stories: 412689

Taseko Mines Ltd. says it has signed a deal to increase its stake in its Gibraltar copper mine in BC in an agreement worth at least $60 million.

Under the terms of the deal, Taseko will acquire Sojitz Corp.’s 50 per cent stake in Cariboo Copper Corp. which holds a 25 per cent stake in the mine.

Cariboo’s other shareholders are Dowa Metals & Mining Co. Ltd with 25 per cent and Furukawa Co. Ltd. with 25 per cent.

The acquisition will give Taseko, which already owns a 75 per cent stake in Gibraltar, an effective 87.5 per cent interest.

In exchange for Sojitz’s stake, Taseko has agreed to make an initial minimum payment of $10 million due to closing and annual payments of $10 million over the next five years.

The company will also make contingent payments for five years depending on the average copper price. The total contingent payments cannot exceed $57 million over the five-year period.