Taseko Mines Ltd. [TKO-TSX, LSE; TGB-NYSE American] reported that it has upsized and priced an offering of US$400-million aggregate principal amount of senior secured notes due 2026, 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 (including accrued interest); to make capital expenditures, including at its Florence copper project in Arizona and Gibraltar mine in British Columbia; 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., 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 Mines 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 would be released.