Taseko's partnership with Mitsui & Co. (U.S.A.), Inc. to develop Taseko’s Florence Copper project in Arizona

On November 6, 2023, Taseko Mines Limited ("Taseko") obtained investment committee approval for their strategic partnership with Mitsui & Co. (U.S.A.), Inc. ("Mitsui") to develop Taseko’s Florence Copper project in Arizona. Mitsui’s initial investment of US$50 million will take the form of a deposit under a copper stream agreement over a portion of copper produced from the project. In addition, Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) and convert the copper stream into a 10% equity interest in Florence Copper Inc. (the project owner), exercisable within a three-year period following completion of construction of the commercial production facility. As part of the transaction, Florence Copper and Mitsui have entered into an offtake contract for approximately 81% of the copper cathode produced from the project during the initial years of production.
The US$50 million senior secured debt facility will be provided by Societe Generale subject to completion of definitive documentation and the satisfaction of conditions precedent. The facility also contains a US$25 million uncommitted accordion feature which can be exercised by the Company in the future to increase its size to US$75 million if needed, subject to additional credit approval at that time.
Taseko, based in Vancouver, Canada, is a mining company focused on operation and development of mines in North America.
Mitsui, based in Japan, has a United States branch that is located in New York.
McCarthy Tétrault advised Taseko with a team led by Roger Taplin and Chris Langdon that included Pat Deutscher, Peter Quon and Geena Lee (Business).