Taseko in talks to up stake in huge BC copper mine

Taseko to up mine stake

Taseko Mines Ltd. says it is in talks regarding a potential deal to increase its stake in its Gibraltar copper mine in B.C.

The company says it has been in confidential discussions with Sojitz Corp. regarding the potential purchase of its 12.5 per cent effective interest in the mine, which is the second largest open-pit mine in B.C. and the largest employer in the Cariboo.

Taseko owns 75 per cent cent of the joint venture that operates Gibraltar, while Cariboo Copper Corp. owns the other 25 per cent. Sojitz Corp. owns a 50 per cent stake in Cariboo.

The company says the potential deal contemplates a modest upfront payment upon closing and additional annual payments over a five-year period.

The annual payments would include a guaranteed minimum payment and additional contingent payments dependent on Gibraltar copper revenues.

The company cautioned that a binding agreement has not been signed and that there could be no assurance that a deal would be reached.

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