Taseko Mines has sealed an agreement to acquire the remaining 12.5% stake in the Gibraltar Mine from Dowa Metals & Mining and Furukawa.
Under the deal, Taseko will purchase shares from Dowa Metals & Mining and Furukawa in Cariboo Copper, which will result in Taseko gaining an effective 100% stake in the Gibraltar Mine.
The acquisition is structured with a base price of C$117m, payable over ten years, and includes additional contingent payments based on copper prices and the mine's cash flow.
An initial payment of C$5m will be made to Dowa and Furukawa post-closing, with subsequent annual payments starting in March 2026.
These annual payments are linked to the average London Metal Exchange copper price from the preceding year, with a minimum of C$5m at prices below $4 per pound and a maximum of C$15.25m at prices of $5 per pound or higher.
However, these payments are capped at a certain percentage of the Gibraltar Mine's annual cash flow, ranging from 6.25% for the years 2025–28, to 10% for 2029–33.
Should any balance remain on the minimum acquisition amount by March 2034, it will be due as a final balloon payment.
The total potential payment is capped at C$142m, limiting the contingent consideration to C$25m.
Additionally, Taseko has the option to settle the acquisition cost before 2029 with a total payment of C$117m.
The minimum payment obligations are structured as loans from Dowa and Furukawa to Cariboo, guaranteed by Taseko and partially secured by Cariboo's 25% joint venture (JV) interest in the Gibraltar Mine.
These loans come with protective covenants including restrictions on amending the JV agreement or selling Cariboo's interest.
Previously, under the Cariboo offtake agreement from 2010, Dowa and Furukawa were entitled to 30% of Gibraltar's copper concentrate for the mine's life.
Post completion of the deal, the offtake deal will be terminated, and Taseko will have full marketing rights for Gibraltar's concentrate.
Taseko president and CEO Stuart McDonald said: “We are happy to once again own 100% of the Gibraltar mine, our foundational asset, which will continue to generate strong returns for the company for many years to come.
“This acquisition provides 14% growth in our attributable copper production, and is immediately cash flow accretive as we advance construction at our Florence Copper Project.”
