Taseko Mines enters agreement to acquire 100% of Gibraltar Mine

Taseko Mines announces that it has entered into a definitive agreement to acquire the remaining 12.5% interest in the Gibraltar Mine from Dowa Metals & Mining Co and Furukawa Co. Under the terms of the Agreement, Taseko will acquire Dowa and Furukawa’s shares in Cariboo Copper Corp and will then own 100% of Cariboo shares and have an effective 100% interest in the Gibraltar Mine. An initial $5 million payment will be made to Dowa and Furukawa shortly following closing. The remaining cash consideration will be repayable in annual payments commencing in March 2026. The annual payments will be based on the average LME copper price of the previous calendar year, subject to an annual cap based on a percentage of cashflow from the Gibraltar Mine. The annual payments also can not exceed 6.25% of Gibraltar’s annual cashflow for the 2025 to 2028 calendar years, and 10% of Gibraltar’s cashflow for the 2029 to 2033 calendar years. Any outstanding balance on the minimum acquisition amount of $117 million will be repayable in a final balloon payment in March 2034. Total consideration is capped at $142 million, limiting the contingent consideration to a maximum of $25 million. In addition, Taseko has the option to settle the full acquisition price at any time prior to 2029 by making total payments of $117 million.