Business
Taseko Monetizes By-Product Silver Stream for US$33 Million
Taseko Monetizes By-Product Silver Stream for US$33 Million Canada NewsWire VANC...
About this update from Taseko Mines Limited
[{"type":"text","content":"\n\n\n\nTaseko Monetizes By-Product Silver Stream for US$33 Million\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\n\nCanada NewsWire\nVANCOUVER, Feb. 27, 2017\n\n\n\nVANCOUVER, Feb. 27, 2017 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) (\"Taseko\" or the \"Company\") is pleased to announce that it has entered into a US$33 million streaming agreement with Osisko Gold Royalties Ltd (\"Osisko\") for Taseko's 75% share of payable silver production from the Gibraltar Mine.\n\nRussell Hallbauer, President and CEO of Taseko, stated, \"Management is continually searching for accretive initiatives to allow the Company to advance its business strategy, while ensuring shareholder's interests are held paramount. Selling this silver stream, which is an unappreciated aspect of our business, was not an obvious source of capital, but turned out to be a very attractive source. With the proceeds from this transaction added to our year end cash balance we have approximately $130 million in available liquidity.  The expected cash generation from Gibraltar will further strengthen our balance sheet this year, providing us with a number of options regarding our debt obligations and project advancement.\"\n\n\"While we believe the higher copper prices combined with our strong operational performance will generate significant cash flow in the months ahead, monetizing Gibraltar's modest silver production for C$43 million is a prudent decision for the Company. Silver sales represent approximately 1% of Gibraltar's total revenue and the sale of this small by-product will not materially impact the mine's overall cost structure. Offsetting the impact from the reduced silver revenue is the strong operating performance of our molybdenum plant as well as higher molybdenum prices.\"\n\n\"We are very happy to partner with Osisko on this transaction. In less than three years, they have become a world-class precious metal royalty and streaming company, already holding more than 50 royalties. Osisko's investment in Gibraltar's silver stream further endorses ou...