Finance

Taseko Mines Limited Launches $500 Million Senior Secured Notes Offering to Fund Expansions and Redeem Existing Debt

VANCOUVER, BC, April 8, 2024 - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO), a prominent player in the mining industry, proudly announced the commencement of a significant financial maneuver with the initiation of an offering of Senior Secured Notes amounting to US$500 million, set to mature in the year 2030. This vital financial move has captured the attention of the mining sector, as the details of the Notes, including the principal amount, interest rate, and terms, are slated to be determined based on the prevailing market conditions alongside other contributing factors at the time of pricing.

Strengthening Financial Foundations for Growth and Development

Taseko has distinctly articulated its strategy regarding the utilization of the net proceeds from this offering. The company intends to allocate the funds, in conjunction with its available cash reserves, primarily to facilitate the redemption of its current 7.00% Senior Secured Notes scheduled for 2026. The focus does not rest solely on the redemption; the funds are also earmarked for capital expenditures, vital for the sustained growth and expansion of Taseko's key projects. These include both the Florence Copper project and the Gibraltar mine. Furthermore, the funds will serve as working capital and be used for general corporate purposes, including the payment of fees and expenses associated with this particular offering.

Regulatory Compliance and Offer Specifics

Considerable emphasis has been placed on the legal and regulatory framework governing the offering. Taseko made it explicit that the Notes will not undergo registration under the U.S. Securities Act of 1933, as amended, nor will they fall under the purview of securities laws from other jurisdictions. In terms of the Canadian market, these Notes will not be qualified through a prospectus. Taseko has outlined that unless subjected to registration or accompanied by a qualifying prospectus, the Notes will be exclusively offered and sold through transactions that are in strict compliance with registration requirements and Canadian securities laws, concerning prospectus qualification.

When it comes to transactions within the United States, the company has restricted the sale of the Notes to those entities that are deemed "qualified institutional buyers," as designated under Rule 144A of the Securities Act. Outside the United States, the Notes will accommodate sales to non-U.S. persons, in strict adherence to Regulation S under the Securities Act. This clear delineation ensures that Taseko's offering aligns with international regulatory guidelines, thereby maintaining the integrity of the offering process.

Taseko's announcement also underscores that the press release, furnished in its entirety in this news communication, is neither an offer to sell nor a solicitation for an offer to buy the Notes, the Existing Notes, or any other securities. The company clarifies that it should not be construed as a sale proposal or a solicitation of purchase of the Notes, the Existing Notes, or of any other securities in any jurisdiction where such an offer, solicitation, or sale would be considered unlawful. Additionally, Taseko has articulated that this announcement does not constitute a redemption notice with regard to the Existing Notes.

Expert Leadership at the Helm

As Taseko turns a page towards further financial consolidation and expansion, the company is spearheaded by Stuart McDonald, who holds the esteemed position of President and CEO. Mr. McDonald brings a wealth of experience and leadership to the table, guiding Taseko through this significant financial development.

Prudent Disclosure and Caution Regarding Forward-Looking Information

In a move demonstrating Taseko's commitment to transparency and due diligence, the press release includes a caution regarding forward-looking information. This section informs investors and the public about certain statements that may be considered "forward-looking statements." These projections pertain to future financial positions, business strategies, production levels, potential reserves, exploration drilling, exploitation activities, and various other future events or developments. The company anticipates these may occur and are often indicated by words such as "believes," "plans," "estimates," "scheduled," "anticipates," "intends," and "expects."

These forward-looking statements are not guarantees of future performance and are based on estimates and assumptions subject to significant business, economic, competitive, political, and social uncertainties and contingencies. The acknowledgment of such forward-looking statements reflects the realistic nature of business projections and their inherent uncertainties. Taseko takes care to ensure that these estimates and assumptions are based on careful analysis but also cautions that actual outcomes could differ materially.

For those desiring a more detailed understanding of Taseko Mines Limited and its operations, the company directs interested parties to review the documents filed with or furnished to the United States Securities and Exchange Commission, which can be accessed through www.sec.gov. Additionally, filings within Taseko's home jurisdiction are available for the public's perusal at www.sedarplus.ca, further enhancing transparency and shareholder engagement.

Finally, the source of this critical announcement, Taseko Mines Limited, reinforces its position in the mining industry by aligning its corporate decisions with strategic financial undertakings designed to bolster its projects and secure its position in the market. With the launch of the Senior Secured Notes, Taseko continues to pave the way for its anticipated future growth and prosperity.

*Please note that no regulatory authority has approved or disapproved of the information contained in this news release.

Conclusion

The announcement from Taseko Mines Limited regarding its new financial endeavor with the offering of Senior Secured Notes is indicative of the company’s intention to fortify its balance sheet while advancing critical projects. The detailed stipulations around the offering not only ensure compliance with pertinent regulations but also reflect a strategic vision for the company's future. Under the guidance of Stuart McDonald, and with a clear outlook on forward-looking statements, Taseko is poised to navigate the dynamic and challenging terrain of the mining industry while delivering value to its shareholders.

Taseko's move is not merely a fiscal transaction but a carefully crafted step towards realizing greater goals within the copper industry. As the company positions itself to redeem existing debt obligations, it simultaneously opens avenues for the flourishing of its notable Florence Copper project and the renowned Gibraltar mine, all while underlining a strong forward-looking financial structure that anticipates success in the years to come.

With the global economy facing uncertainties, the minerals and metals industry stands as a pillar of stability and growth. Companies like Taseko, with their foresight and sound financial strategies, contribute to building resilience within the sector. The introduction of these Senior Secured Notes can be seen as an anchor in the tumultuous financial seas, securing a robust framework for Taseko's current assets and future explorations.

As Taseko marches ahead with its offering of US$500 million, the mining industry observers and investors will be keen to follow this financial journey that merges prudence with ambition. Such strategic financial decisions signal not just growth but a reiteration of confidence in the projects that Taseko harbors, setting a standard for financial dexterity in a complex economic landscape.

In essense, as the mining sector continues to evolve, Taseko Mines Limited's announcement reflects a symbiosis between strong leadership, foresighted planning, and financial acumen. The deliberate approach to redeeming existing debts and fueling necessary capital expenditures illustrates Taseko's commitment to fortifying its stature within the industry and ensuring sustainable growth for years to come.

Taseko's announcement of the Senior Secured Notes is a testament to the fact that robust financial management and strategic investments remain at the heart of mining companies' operational success. By addressing upcoming financial obligations and paving the way for enhancement of its mining ventures, Taseko demonstrates a proactive approach that other industry players may look to emulate.

In conclusion, this strategic movement by Taseko Mines Limited to introduce a new set of Senior Secured Notes worth US$500 million encapsulates the dynamic approach the company takes towards its financial health and project development. The meticulous planning and clear-cut compliance with securities regulations reflect not only Taseko's dedication to transparency but also its comprehensive approach to corporate governance and responsible business practice.

The mining community and its stakeholders eagerly anticipate how the market will respond to this new offering, as Taseko Mines Limited steadies its course towards a sustainable and profitable future, fortified with the strength of its assets, leadership, and strategic financial maneuvers.

About Taseko Mines Limited

Taseko Mines Limited is a mining company primarily focused on the operation and development of mines in North America. Headquartered in Vancouver, BC, Taseko is the operator of the third largest open-pit copper mine in Canada and seeks to grow its business through the development of its extensive pipeline of greenfield and brownfield projects. For more information on Taseko's forward-thinking approach and its various mining ventures, please contact the company directly or visit their official website.