Taseko Announces Offering of US$325 Million of Senior Secured Notes Due 2026

Rhea-AI Summary

Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) announced the offering of US$325 million in Senior Secured Notes due 2026. The funds will be used to redeem existing 8.75% Senior Secured Notes due 2022, finance capital expenditures for the Florence Copper project and Gibraltar mine, and cover general corporate expenses. The offering is exempt from registration under U.S. securities laws and will be available to qualified institutional buyers. No regulatory authority has approved the information in this release.

Positive

• Plans to redeem existing high-interest 8.75% Senior Secured Notes, potentially lowering interest expenses.
• Funds will support capital expenditures at Florence Copper and Gibraltar mine, which may enhance production capabilities.

Negative

• The offering may dilute existing shareholder interests if new notes are issued.
• Market conditions could affect the ultimate terms and interest rate of the Senior Secured Notes.

VANCOUVER, BC, Jan. 25, 2021 /PRNewswire/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko") today announced that it has commenced an offering of US$325 million of Senior Secured Notes due 2026 (the "Notes"). The aggregate principal amount, interest rate and other terms of the Notes will be determined at pricing and are dependent upon market conditions and other factors. Taseko intends to use the net proceeds from this offering, together with cash on hand, to redeem its outstanding 8.75% Senior Secured Notes due 2022 (the "Existing Notes"), to make capital expenditures, including at its Florence Copper project and Gibraltar mine, as working capital and for general corporate purposes and to pay fees and expenses in connection with this offering. The Notes will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. The Notes will not be qualified by a prospectus in Canada. Unless they are registered or qualified by a prospectus, the Notes may be offered and sold, only in transactions that are exempt from registration requirements and from prospectus qualification under Canadian securities laws. In the United States, the Notes will be offered and sold, only to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) and outside the United States, to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes, the Existing Notes or any other securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, the Notes, the Existing Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release does not constitute a notice of redemption with respect to the Existing Notes.

Russell Hallbauer
Chief Executive Officer and Director

No regulatory authority has approved or disapproved of the information contained in this news release.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements and forward-looking information (collectively referred to as "forward-looking statements"), within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and 21E of the U.S. Securities Exchange Act of 1934, as amended, which may not be based on historical fact, including without limitation statements regarding Taseko's expectations in respect of future financial position, business strategy, future production, reserve potential, exploration drilling, exploitation activities, events or developments that Taseko expects to take place in the future, projected costs and plans and objectives. Often, but not always, forward-looking statements can be identified by the use of the words "believes," "may," "plan," "will," "estimate," "scheduled," "continue," "anticipates," "intends," "expects," "aim" and similar expressions.

Such statements reflect Taseko's current views with respect to future events and are subject to risks and uncertainties. These statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Taseko's actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including those contained in Taseko's filings. For further information on Taseko, investors should review the documents that Taseko has filed with or furnished to the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedar.com.

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SOURCE Taseko Mines Limited

FAQ

What is Taseko Mines' recent financial announcement regarding TGB?

Taseko Mines announced an offering of US$325 million in Senior Secured Notes due 2026.

How will Taseko use the proceeds from the Senior Secured Notes?

The proceeds will be used to redeem existing Senior Secured Notes, fund capital expenditures at Florence Copper and Gibraltar mine, and for general corporate purposes.

What is the interest rate on the new Senior Secured Notes from TGB?

The interest rate for the new Senior Secured Notes will be determined at pricing, dependent on market conditions.

Who can purchase the new Senior Secured Notes from Taseko?

The Notes will only be offered to qualified institutional buyers and non-U.S. persons.

Is there any regulatory approval for Taseko's new Notes offering?

No regulatory authority has approved or disapproved the information in the press release.