VANCOUVER, BC, May 3, 2023
/CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB)
(LSE: TKO) ("Taseko" or the "Company") announces that it has
entered into an equity distribution agreement dated May 3, 2023 (the "Equity Distribution Agreement")
providing for an at-the-market equity offering program ("ATM") with
National Bank Financial, Canaccord Genuity and Stifel GMP and their
respective United States
affiliates (collectively, the "Agents").
The ATM will allow Taseko, through the Agents, to offer and sell
from time to time in Canada and
the United States, through the
facilities of the Toronto Stock Exchange ("TSX") and the NYSE
American LLC ("NYSE American") such number of common shares as
would have an aggregate offering price of up to US$50 million. Sales of the common shares, if
any, will be made in transactions that are deemed to be
"at-the-market distributions" as defined in National Instrument
44-102 – Shelf Distributions and an "at-the-market offering" as
defined in Rule 415 under the United States Securities Act of 1933,
as amended, including sales made by the Agents directly on the TSX,
the NYSE American or any other trading market for common shares in
Canada, the United States or as otherwise agreed
between the Agents and the Company. The Company has applied to the
TSX and NYSE American for listing of the common shares that may be
issued under the ATM and sales will be subject to the receipt of
the required stock exchange approvals. The common shares sold under
the ATM will also be admitted to trading on the London Stock
Exchange.
The ATM will be effective until May 26,
2025 unless terminated before such date in accordance with
the Equity Distribution Agreement. The timing and extent of the use
of the ATM will be at the discretion of the Company. Accordingly,
total gross proceeds from sales made under the ATM, if any, could
be significantly less than US$50
million.
The Company intends to use any proceeds from the ATM for its
general corporate purposes, which may include (i) capital
expenditures for the Company's Gibraltar mine, (ii) expenses associated with
the development of the Company's Florence Copper project, (iii)
expenditures on Taseko's other projects, and (iv) general corporate
and working capital purposes.
The sale of the Company's common shares through the ATM will be
made pursuant to, and qualified in Canada by, a prospectus supplement dated
May 3, 2023 (the "Prospectus
Supplement") to the base shelf prospectus of the Company dated
April 25, 2023 (the "Base
Prospectus"), and in the United
States pursuant to a prospectus supplement dated
May 3, 2023 (the "U.S. Prospectus
Supplement") to the Company's final base shelf prospectus contained
in the Company's effective registration statement on Form F-10
(File No. 333-271142) filed with the United States Securities and
Exchange Commission (the "SEC"). The Prospectus Supplement
(together with the Base Prospectus) will be available on the SEDAR
website maintained by the Canadian Securities Administrators at
www.sedar.com and the U.S. Prospectus Supplement (together
with the related base prospectus) will be available on the SEC's
website at www.sec.gov. Printed or electronic copies of the
documents can also be requested by contacting the Company's
Corporate Secretary by mail at #1200 - 1040 West Georgia Street,
Vancouver, BC, Canada, V6E 4H1, by email at
investor@tasekomines.com or by phone at +1 778-373-4533.
Alternatively, the following Agents participating in the ATM will
arrange to send you these documents if you make a request by
contacting:
National Bank Financial Inc.
475 Howe Street, Suite 3000
Vancouver, BC V6C 2B3
gavin.brancato@nbc.ca
Canaccord Genuity
99 High Street
12th Floor
Boston, MA 02110
prospectus@cgf.com
Stifel Nicolaus Canada Inc.
161 Bay Street, Suite 3800
Toronto, ON M5J 2S1
SyndProspectus@stifel.com
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor will there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful before registration
or qualification under the securities laws of any such state or
jurisdiction.
Stuart McDonald
President and CEO
No regulatory authority has approved or
disapproved of the information contained in this news release.
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
This document contains "forward-looking statements" that were
based on Taseko's expectations, estimates and projections as of the
dates as of which those statements were made. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "outlook", "anticipate",
"project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions. Forward-looking statements made
in this news release include statements regarding the Company's
expected use of proceeds from the ATM, if any.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. These included but are not limited
to:
- uncertainties about the future market price of copper and the
other metals that we produce or may seek to produce;
- changes in general economic conditions, the financial markets,
inflation and interest rates and in the demand and market price for
our input costs, such as diesel fuel, reagents, steel, concrete,
electricity and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the
value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
- the impact of rising interest rates by central banks on our
current and future borrowing costs, including the impact that
inflation could have on the estimated costs related to the
construction of the Florence Copper Project;
- uncertainties resulting from the war in Ukraine, and the accompanying international
response including economic sanctions levied against Russia and other countries, which has
disrupted the global economy, created increased volatility in
commodity markets (including oil and gas prices), and disrupted
international trade and financial markets, all of which have an
ongoing and uncertain effect on global economics, supply chains,
availability of materials and equipment and execution timelines for
project development;
- uncertainties about the continuing impact of the novel
coronavirus ("COVID-19") and the response of local, provincial,
state, federal and international governments to the ongoing threat
of COVID-19, on our operations (including our suppliers, customers,
supply chains, employees and contractors) and economic conditions
generally including stimulation measures implemented, rising
inflation levels and in particular with respect to the demand for
copper and other metals we produce;
- inherent risks associated with mining operations, including our
current mining operations at Gibraltar, and their potential impact on our
ability to achieve our production estimates;
- uncertainties as to our ability to control our operating costs,
including inflationary cost pressures at Gibraltar without impacting our planned copper
production;
- the risk of inadequate insurance or inability to obtain
insurance to cover material mining or operational risks;
- uncertainties related to the feasibility study for the Florence
Copper Project and our other development projects which provide
estimates of future production, expected or anticipated capital and
operating costs, expenditures and economic returns from these
mining projects;
- uncertainties related to the accuracy of our estimates of
mineral reserves, mineral resources, production rates and timing of
production, future production and future cash and total costs of
production and milling;
- the risk that grades and recoveries at Gibraltar may not remain consistent with our
mineral reserve expectations and current mine plans;
- the risk that we may not be able to expand or replace reserves
as our existing mineral reserves are mined;
- the availability of, and uncertainties relating to the
development of, additional financing and infrastructure necessary
for the advancement of our development projects, including with
respect to our ability to obtain any remaining construction
financing potentially needed to move forward with commercial
operations at Florence Copper;
- our ability to comply with the extensive governmental
regulation to which our business is subject;
- uncertainties related to our ability to obtain necessary title,
licenses and permits for our development projects and project
delays due to third party opposition, particularly in respect to
Florence Copper that requires one key regulatory permit from the
U.S. Environmental Protection Agency ("EPA") in order to advance to
a construction decision and commercial operations;
- uncertainties related to the Florence Copper Project execution
plan, including inflation risk and the potential impact of supply
chain disruptions on our construction schedule, which could impact
the transition into construction operations after the final permit
is received from the EPA;
- uncertainties relating to the satisfaction of the conditions
for the advance of the US$50 million
deposit under our copper stream agreement with Mitsui for the
construction of the Florence Copper commercial facility and our
US$25 million equipment commitment
from Bank of America Leasing and Capital LLC;
- uncertainties relating to our ability to secure premium pricing
for copper produced at the Florence Copper facility based on its
low-carbon characteristics;
- the risk that until construction of the commercial facility at
Florence Copper is complete and ramped up, there could be increases
in actual costs incurred that will negatively impact our estimates
for current projected economics for commercial operations at
Florence Copper;
- uncertainties related to First Nations claims and consultation
issues;
- our reliance on rail transportation and port terminals for
shipping our copper concentrate production from Gibraltar;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and
government policies affecting our exploration and development
activities and mining operations and mine closure and bonding
requirements;
- our current dependence solely on our 87.5% interest in
Gibraltar for revenues and
operating cashflows;
- our ability to collect payments from customers, extend existing
concentrate off-take agreements or enter into new agreements;
- environmental issues and liabilities associated with mining
including processing and stock piling ore;
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate our mine, industrial accidents, equipment failure, weather
related breakdowns or other events or occurrences, including third
party interference that interrupt the production of minerals in our
mine;
- environmental hazards and risks associated with climate change,
including the potential for damage to infrastructure and stoppages
of operations due to forest fires, flooding, extreme cold, drought,
or other natural events in the vicinity of our operations;
- litigation risks and the inherent uncertainty of litigation,
including litigation to which Florence Copper could be subject
to;
- our actual costs of reclamation and mine closure may exceed our
current estimates of these liabilities;
- our ability to meet the financial reclamation security
requirements for Gibraltar,
Florence Copper and other development projects;
- the capital intensive nature of our business both to sustain
current mining operations and to develop any new projects,
including Florence Copper;
- our reliance upon key management and operating personnel;
- the competitive environment in which we operate;
- the effects of forward selling instruments to protect against
fluctuations in copper prices, foreign exchange, interest rates or
input costs such as diesel fuel;
- the risk of changes in accounting policies and methods we use
to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates; and
Management Discussion and Analysis ("MD&A"), quarterly reports
and material change reports filed with and furnished to securities
regulators, and those risks which are discussed under the heading
"Risk Factors".
For further information on Taseko, investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.gov and home jurisdiction filings
that are available at www.sedar.com, including the "Risk Factors"
included in our Annual Information Form.
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SOURCE Taseko Mines Limited