Taseko completes US$70M secured credit facility

Date Closed

January 29, 2016

Lead Office

Vancouver

Value

70.00 Million USD

On February 1, 2016, Taseko Mines Limited ("Taseko") announced it had entered into a Senior Secured Credit Facility Agreement (the “Facility”) with an affiliate of RK Mine Finance (“Red Kite”). An initial tranche of US$31 million was advanced on closing to refinance Taseko’s existing secured loan with Red Kite, and the remaining US$39 million will be available to Taseko for general corporate purposes.

In connection with the Facility, Taseko also granted Red Kite a call option for 7,500mt of copper at a strike price of US$2.04/lb, to be settled in cash (up to a maximum of US$15 million payable by Taseko). The call option is cancellable by Taseko, upon payment of a cancellation fee, on terms and conditions set out in the Facility. Also in connection with the Facility, Taseko issued 4 million share purchase warrants with an exercise price of C$0.51 and an exercise period ending 39 months from the date of issue.

Taseko is a mining company focused on the operation and development of mines in North America.

McCarthy Tétrault LLP advised Taseko on all aspects of the transaction with a team led by Chris Langdon (Finance and Mining) that also included Stephen Curran (Financial Services), Roger Taplin, Steve Molnar and Patrick Deutscher (Mining), and Lindsay Burgess (Litigation).

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