The definitive agreement will see Taseko pay C$117 million (about $86m) over a period of ten years for the shares held by Dowa and Furukawa in Cariboo Copper Corp.
With the move, the Vancouver-based company will be the sole owner of Cariboo Copper Corp, effectively gaining a 100% interest in the Gibraltar mine, in south-central British Columbia.
It also gives it additional offtake rights as the Cariboo offtake contract comes back to Taseko, providing potential cost savings, McDonald said.
On top of the initial C$5 million ($3.7m) to be paid to Dowa and Furukawa (C$2.5 million each) after closing the deal, Taseko may have to pocket contingent payments depending on copper prices and Gibraltar’s cashflow, the company said.
“We have established a positive relationship with Dowa and Furukawa over the last 14 years,” McDonald noted. “Given that both groups are reducing their copper smelting businesses and are exiting their…
