VANCOUVER, BC, Jan. 27, 2021 /PRNewswire/ - Taseko Mines
Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko") today
announced that it has upsized and priced an offering of
US$400 million aggregate principal
amount of Senior Secured Notes due 2026 (the "Notes"), an upsize of
US$75 million over the amount
previously announced. Interest on the Notes will accrue at an
annual rate of 7.0% payable semi-annually, and the Notes will be
issued at par. The offering is expected to close on February 10, 2021, subject to customary closing
conditions.
Taseko intends to use the net proceeds from this offering,
together with cash on hand, to redeem all US$250 million aggregate principal amount
outstanding of its 8.75% Senior Secured Notes due 2022 (the
"Existing Notes") (including accrued interest), to make capital
expenditures, including at its Florence Copper project and
Gibraltar mine, as working
capital, for general corporate purposes and to pay fees and
expenses in connection with this offering.
The Notes will be secured by first priority liens on the shares
of Taseko's wholly-owned subsidiaries, Gibraltar Mines Ltd.
("Gibraltar"), Curis Holdings (Canada) Ltd. and Florence Holdings Inc., and
by Gibraltar's rights under the
joint venture agreement relating to the Gibraltar mine. The Notes will also be
guaranteed by certain restricted subsidiaries including
Gibraltar and Florence Copper Inc.
Upon admission of a minority joint venture partner for the Florence
Copper project under certain conditions, the guarantee of the bonds
by Florence Copper Inc. would be released.
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.
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.
Russell Hallbauer
Chief Executive Officer and Director
No regulatory authority has approved or disapproved of the
information contained in this news release.
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SOURCE Taseko Mines Limited