Taseko to Acquire Joint Venture Interest in Gibraltar Mine Restart
Friday March 12, 3:17 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--March 12, 2004--Ronald W. Thiessen, President and CEO of Taseko Mines Limited ("Taseko"), OTCBB:TKOCF announces that Taseko has elected to exercise its purchase right to acquire all of the issued and outstanding units of the Gibraltar Reclamation Trust Limited Partnership ("GRT LP"). This acquisition is being made pursuant to the call right granted to Taseko in the financing agreements with the GRT LP announced in December 2003. It is expected that approximately 8 million Taseko common shares will be issued for consideration of $22.2 million, and at a value of Cdn$2.79 per share. The acquisition by Taseko of the GRT LP has already been approved by the necessary securities regulators and will be completed shortly. The Taseko shares to be issued will be subject to resale restrictions in Canada until May 1, 2004 and such shares have not been qualified for resale in the United States.
In December 2003, the GRT LP closed an $18.6 million financing to partially fund reclamation bonding requirements of the Gibraltar mine. Of the financing proceeds, approximately $17.1 million was contributed to a qualifying environmental trust, which permitted Gibraltar to receive the balance of reclamation deposits ($16.7 million) held by the Government of British Columbia, and released into trust to finance the restart of the Gibraltar mine. In addition, and as required, Taseko advanced $4.6 million into trust to provide additional funding for the restart of the Gibraltar mine. As part of the financing, the GRT LP entered into a joint venture arrangement with Gibraltar. Pursuant to the joint venture agreement, Gibraltar will contribute the use of its mine assets and fund the mine startup expenses with the funds described above. In particular, and as a result of this acquisition, Taseko will acquire all of the rights and obligations of the GRT LP pursuant to the Gibraltar Reclamation Trust Indenture and Joint Venture Agreement, which includes Gibraltar revenue or production share entitlements, and authority to participate in and supervise the Gibraltar mine reopening, as well as residual rights to the Gibraltar Reclamation Trust after satisfaction of all mine reclamation obligations.
Mr. Thiessen says, "The acquisition of the GRT LP will provide Taseko with 100% control of those elements necessary for a mine restart as well as operations and revenue entitlements from the Gibraltar mine. This transaction, combined with improved copper prices, will enhance returns to our shareholders."
Taseko owns substantial copper and gold resources and is well positioned to take advantage of the improving metal market conditions for copper and gold. Taseko's main assets are the Gibraltar copper mine, and the advanced stage Prosperity gold-copper and Harmony gold projects. All are located in British Columbia, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
Ronald W. Thiessen, President and CEO
No regulatory authority has approved or disapproved the information contained in this news release.
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Contact:
Taseko Mines Limited
Ronald W. Thiessen, 604-684-6365
Toll Free: 800-667-2114
Fax: 604-684-8092
www.hdgold.com
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Source: Taseko Mines Limited
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