Taseko Mines Ltd. says it has signed a deal to increase its stake in its Gibraltar copper mine in B.C. in an agreement worth at least $60 million.
Under the terms of the deal, Taseko will acquire Sojitz Corp.’s 50 per cent stake in Cariboo Copper Corp. which holds a 25 per cent stake in the mine.
Cariboo’s other shareholders are Dowa Metals & Mining Co. Ltd with 25 per cent and Furukawa Co. Ltd. with 25 per cent.
The acquisition will give Taseko, which already owns a 75 per cent stake in Gibraltar, an effective 87.5 per cent interest.
In exchange for Sojitz’s stake, Taseko has agreed to make an initial minimum payment of $10 million due on closing and annual payments of $10 million over the next five years.
The company will also make contingent payments for five years depending on the average copper price. The total contingent payments cannot exceed $57 million over the five-year period.