Taseko Mines (NYSE:TGB) +3.6% in early trading Friday after saying it is discussing a deal to acquire an additional 12.5% stake in the Gibraltar open-pit copper mine in British Columbia from Sojitz Corp., although no deal has been finalized.
Gibraltar is operated through a joint venture owned 75% by Taseko (TGB) and 25% by Cariboo Copper Corp., which is 50% owned by Sojitz.
Taseko (TGB) said the potential deal could consist of a “modest” up-front payment to be funded with cash on hand, and annual payments over five years period to be funded from cash flows from the acquired 12.5% interest dependent on Gibraltar copper revenues.
In 2022, the Gibraltar mine produced 97M lbs of copper and copper sales totaling 101M lbs.
Taseko Mines (TGB) recently secured $25M in financing from Bank of America for Florence Copper and reached a deal with with Mitsui for $50M in exchange for 2.67% of Florence Copper’s production.