Taseko acquires additional 12.5% Gibraltar mine stake for $60 million

Taseko Mines (TSX: TKO; NYSE: TGB; LSE: TKO) has agreed to acquire an additional 12.5% interest in the Gibraltar copper-molybdenum mine from Sojitz Corp. The mine is a joint venture of Taseko (75%) and Caribou Copper (25%). Caribou Copper is 50% owned by Sojitz. At the conclusion of the agreement, Taseko will hold an 87.5% interest in the mine located in south-central British Columbia.

Taseko has agreed to pay a minimum of $60 million over five years. Potential contingent payments dependent on mine revenues and copper prices may also be made over this period. Sojitz will receive an initial $10 million payment when the deal closes and an additional $10 million per year for each of the next five years.

Sojitz said it is reducing its interest in the Gibraltar mine so that it can transition towards metal recycling and other midstream processing businesses.

The Gibraltar mine produced its first copper in 1972, but low metal prices forced the owners to suspend operation in 1998. Taseko acquired the mine the following year. Production was restarted in 2004.

Beginning in 2007 and continuing through 2013, Taseko oversaw $700 million in three phases of expansion to the mine and mill giving the mill a throughput of 85,000 t/d. There are over 700 employees at the sight, and the mill is running over capacity.

Gibraltar ranks in the lowest quartile of carbon intensity, compared to other copper miners around the world. Scope 1 GHG emissions are 1.66 tonnes carbon dioxide-equivalent per pound of copper produced and Scope 2 GHG emissions are 0.09 tonnes CO₂-equivalent per lb. of copper.

Additional information about Gibraltar is posted at www.TasekoMines.com.