Taseko Mines (TSX: TKO; LSE: TKO) has secured US$25 million in additional financing to pay for the solvent extraction and electrowinning (SX/EW) plant for its Florence copper commercial production facility in Arizona.
The latest funding agreement, with Bank of America Leasing & Capital LLC, follows an initial investment of US$50 million made recently by Japan’s Mitsui for construction of the in-situ mining project. As part of the deal with Mitsui, the parties entered into an offtake contract for 81% of the copper cathode produced at Florence during its early years.
“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,” stated Stuart McDonald, president and CEO of Taseko, in a news release.
The US$25 million funding will be available for drawdown upon Florence copper receiving the final underground injection control permit from the EPA. In August 2022, the project was granted a draft underground injection control licence despite concerns over its potential environmental impact.
Initial capital costs for Florence are estimated at US$227 million for a 20-year facility that would produce 85 million lb. copper annually at an average cost of US$1.13 per lb.
The Bank of America loan will be secured by specific treatment and processing equipment in the SX/EW plant with an initial term of five years.
“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,” McDonald went on to say.
“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,” he explained.
According to Taseko, Florence has one of the least capital-intensive copper production facilities in the world, and when fully ramped up, will produce 40,000 tonnes of high-quality cathode copper annually for the US domestic market.
The project is also expected to have the lowest energy and greenhouse gas-intensity of any copper producer in North America.
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