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February 2, 2023, Vancouver, BC – Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the “Company”) is pleased to announce it has entered into an agreement to extend the maturity date of its US$50 million Revolving Credit Facility (the “Facility”) by an additional year to July 2, 2026.The Facility, which is arranged and fully underwritten by National Bank of Canada (“National Bank”), is currently undrawn and available for general and working capital purposes.
In addition to the one-year extension of the Facility, National Bank has also agreed to an accordion feature, which will allow the amount of the Facility to be increased by US$30 million, for a total of US$80 million, subject to credit approval and other conditions.
The Company is also pleased to announce that it has recently extended both its copper price protection and diesel hedging programs. A zero-cost copper collar has been put in place for the second half of 2023 securing a minimum price of US$3.75 per pound and a ceiling of US$4.70 per pound, for most of Taseko’s share of Gibraltar production. This new contract extends the existing copper price collars that are in place to protect a minimum price of US$3.75 per pound for the first half of 2023. Taseko’s diesel hedging program has also been extended through the purchase of additional diesel call options to the end of 2023, shielding operating costs from further increases in diesel prices.
Stuart McDonald, President & CEO of Taseko, stated, “Taseko has a long-standing copper price protection strategy that ensures we receive a minimum price for a portion of Gibraltar copper production. This conservative approach to managing price risk has served us well in the past, and last year we received C$23 million of cash proceeds from copper collars. We expect to commence construction at our Florence Copper Project this year upon receipt of the final Underground Injection Control Permit, and the extended Facility and copper hedging program are key elements of the financing plan.”
About the Revolving Credit Facility
After giving effect to the one-year extension described herein, the Facility has a tenor of 42 months and matures in July 2026 and is extendable annually thereafter. The Facility is secured by a first lien charge against Taseko’s rights under the Gibraltar Joint Venture as well as its shares of Gibraltar Mines Ltd., Curis Holdings (Canada) Ltd. and Florence Holdings Inc. The Facility includes financial and other covenants commensurate with a corporate revolving credit facility of this nature. The one-year extension and other amendments to the Facility described herein are subject to the satisfaction of certain customary conditions precedent.
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
President and CEO
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