Taseko Mines Limited announced it obtained an underwritten commitment for $25 million from Banc of America Leasing & Capital. Proceeds from this financing will be available to Taseko to fund costs associated with the Solvent Extraction and Electrowinning (SX/EW) plant for the Florence Copper commercial production facility.
“Following the recently announced strategic partnership with Mitsui & Co. for our Florence Copper project, this additional source of funds will further strengthen our balance sheet and provide financing flexibility as we prepare for construction of the project in 2023,” Stuart McDonald, president and CEO of Taseko, said. “We have a long-standing relationship with Bank of America, a North American leader in equipment financing for mines and projects directly supporting low-carbon initiatives in the United States.”
In addition to Florence Copper’s strong economics, the project has many environmental attributes, including low carbon emissions and a low footprint operation, which are attractive to financial partners. The financing commitment from Bank of America is a customized solution developed for Taseko, leveraging the equipment security of our SX/EW plant, since conventional mining equipment like shovels and haul trucks will not be used at Florence Copper.”
The $25 million of funding will be available for drawdown upon Florence Copper receiving the final underground injection control permit from the EPA. The loan will be secured by specific treatment and processing equipment in the SX/EW plant with an initial term of five years. The facility can be repaid at any time and carries no financial covenants.
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