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Taseko Completes US$70 Million Secured Credit Facility
Taseko Completes US$70 Million Secured Credit Facility Taseko Completes US$70 Mill...
About this update from Taseko Mines Limited
[{"type":"text","content":"\n\n\n\nTaseko Completes US$70 Million Secured Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nTaseko Completes US$70 Million Secured Credit Facility\nCanada NewsWire\nVANCOUVER, Feb. 1, 2016\n\n\n\nVANCOUVER, Feb. 1, 2016 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) (\"Taseko\" or the \"Company\") announced today that the Company has entered into a US$70 million Senior Secured Credit Facility Agreement (the \"Credit Facility\") with an affiliate of RK Mine Finance (\"Red Kite\"), one of the world's largest metal merchants. \n\n\"In addition to repaying the May 2016 loan, this facility strengthens our balance sheet with approximately US$40 million of additional liquidity in a time of extremely challenging financial markets. It is also a significant endorsement of Taseko's strategy and its assets by a major global copper financer,\" said Russell Hallbauer, President and CEO of Taseko. \"This credit facility also protects Taseko's cash flow because there are no principal or interest payments due during the three-year term.\"\n\n\"We pursued a number of different options to address the 2016 loan maturity and, in the end, it was Red Kite that brought forward the most attractive financing option, which comes with a cost of capital below 10% at current market prices, and no off-take obligations. A copper call option and Taseko warrants, also part of the credit facility, allowed Taseko to negotiate a favourable interest rate. Red Kite and Taseko will benefit from a strengthening copper market, which is aligned with Taseko's shareholders' interests who will also benefit from improved financial performance as copper prices increase,\" Mr. Hallbauer added.\n\nDetails of the Credit Facility\n\nThe credit facility consists of an initial tranche of US$31 million to refinance the Company's existing secured loan with Red Kite, which matures in May 2016, and the remaining US$39 million will be available to the Company for general corporate purposes. Amounts drawn under the Credit Facility will accrue interest at a rate of LIBOR ...