Taseko Mines Gets US$70 Million Credit Facility From Red Kite Affiliate

Taseko Mines (TSX:TKO) has entered into a US$70 million senior secured credit facility agreement with an affiliate of Red Kite mine finance.
As quoted in the press release, Russell Hallbauer, President and CEO of Taseko, said:

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. This credit facility also protects Taseko’s cash flow because there are no principal or interest payments due during the three-year term.
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.

Click here for the full press release.