Copper miner Taseko Mines has obtained an underwritten commitment for $25-million from Bank of America Leasing and Capital to fund costs associated with the solvent extraction and electrowinning (SX/EW) plant for the Florence copper commercial production facility, in Arizona.
President and CEO Stuart McDonald explains that the financing commitment from Bank of America is a customised 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.
The $25-million of funding will be available for drawdown upon the project receiving the final underground injection control permit from the Environmental Protection Agency.
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.
“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,” says McDonald.
Last month, Taseko announced a $51-million investment from Mitsui to fund the construction of the commercial production facility at Florence. The initial investment will be in the form of a copper stream agreement on 2.67% of the copper produced at Florence. Additionally, Mitsui has the option to invest an additional $50-million for a 10% equity interest in the project.