Taseko and Mitsui partner to develop Florence Copper
by CM staff
Mitsui has committed to an initial investment of US$50 million, with proceeds to be used for construction of the commercial production facility.
VANCOUVER — Taseko Mines Limited signed agreements with Mitsui & Co. to form a partnership to develop the company’s Florence Copper project, located in Arizona USA.
Mitsui has committed to an initial investment of US$50 million, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement on 2.67 per cent of the copper produced at Florence Copper.
“This agreement with Mitsui establishes a strategic partnership with a leading international company,” said Stuart McDonald, President & CEO, Taseko. “Mitsui’s investment will complement Taseko’s financing requirements and construction timeline and advance our goal of ensuring the copper produced at Florence is recognized for its unique low-carbon profile that will advantage US manufacturers and consumers. In the future, Taseko and Mitsui will collectively evaluate additional investments toward establishing Florence Copper as a zero-carbon copper producer (Scope 1 and 2).”
In addition, Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) for a 10 per cent equity interest in Florence Copper. The project is exercisable by Mitsui within a three-year period following completion of construction of the commercial production facility. If Mitsui elects to exercise its equity option the copper stream will terminate.
As part of the arrangement, Taseko and Mitsui have entered into an offtake contract for 81 per cent of the copper cathode produced at Florence during the initial years of production.
“We are excited to partner with Taseko and its unique, low-carbon and low-impact Florence Copper project,” said Sayu Ueno, President and CEO, Mitsui & Co. “When in production, Florence Copper will significantly expand our US cathode trading business, while providing an environmentally sound, domestically produced product that can be marketed on the basis of its low-carbon advantages. We believe Florence Copper will be a preferred source of ‘made-in-the-US’ copper for many end users in North America.”
