Taseko Mines (TSX: TKO; NYSE: TGB; LSE: TKO) has inked a deal with Taurus Mining Royalty Fund that would allow it to speed up construction of its Florence copper mine in Arizona.
The US$50-million agreement with Taurus is for the sale of a 1.95% gross-revenue royalty generated from Taseko’s Florence copper project, the company said, adding it expects to receive the funding in early February, subject to customary closing conditions.
The Vancouver-based miner also anticipates receiving the first US$10 million of the US$50 million Mitsui earmarked in December for the project’s development later this month.
Construction activities to date have been mainly focused on site preparations, earthworks and civil work for the commercial wellfield, which Taseko expects to start drilling in February.
The company also plans to sign a fixed-price contract with TIC Kiewit as general contractor for building the SX/EW plant and related surface infrastructure. All the major plant components are already onsite and the construction will begin in the second quarter of this year, Taseko said. The operation received its final permit needed last fall.
President and chief executive Stuart McDonald said the company is “eager” to ramp up the construction activities at Florence, which will soon become “a major new source of low-carbon copper cathode for the U.S. market.”
The project, being built with in situ recovery (ISR) rather than conventional open pit or underground methods, is expected to begin production in the final quarter of 2025.
A technical report in March 2023 detailed a 22-year mine life with an annual production capacity of 85 million lb. of copper. When the report was written, there were $232 million remaining to be spent to reach commercial production.
Florence has proven and probable reserves of 290 million tonnes grading 0.36% copper.
Correction: An earlier version of this article stated production at Florence was scheduled to start in early 2025 and could begin in 2024.
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