VANCOUVER, June 7, 2017 /PRNewswire/ - Taseko Mines
Limited (TSX: TKO; NYSE MKT: TGB) ("Taseko") today announced that
it has priced its previously announced offering of US$250 million aggregate principal amount of
Senior Secured Notes due 2022 (the "Notes"). Interest on the Notes
will accrue at an annual rate of 8.750%, payable semi-annually, and
the Notes will be issued at 99% of their principal amount. The
Notes will be guaranteed by each of Taseko's existing and future
restricted subsidiaries, other than certain immaterial
subsidiaries. The Notes will be secured by first priority liens on
the shares of Taseko's wholly-owned subsidiary, Gibraltar Mines
Ltd., and the subsidiary's rights under the joint venture agreement
relating to the Gibraltar mine.
The offering is expected to close on June
14, 2017, subject to customary closing
conditions.
Taseko intends to use the net proceeds from this offering,
together with cash on hand, to redeem its outstanding 7.75% Senior
Notes due 2019 (the "Existing Notes") (including accrued interest),
to prepay its secured loan facility (including accrued interest and
prepayment costs) and to cancel a copper call option held by the
secured loan facility lender.
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
"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.
For further information on Taseko, investors should review
Taseko's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.gov and home jurisdiction
filings that are available at www.sedar.com.
SOURCE Taseko Mines Limited