Taseko Completes Gibraltar Mine Acquisition.VANCOUVER, British Columbia--(BUSINESS WIRE)--July 21, 1999-- Robert G. Hunter, Chairman of Taseko Mines Limited (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TKOCF, VSE See DOS/VSE. VSE - Virtual Storage Extended : TKO), confirmed today that Taseko has completed its acquisition of the Gibraltar Mine from Boliden Limited and certain affiliates, including all mineral interests, mining and processing equipment and facilities, and responsibility for ongoing reclamation, as announced on April 26, 1999. Located near the City of Williams Lake Williams Lake is the name of several places: Canada
, the large-scale open pit copper mine had been the subject of tripartite TRIPARTITE. Consisting of three parts, as a deed tripartite, between A of the first part, B of the second part, and C of the third part. negotiations between Taseko, Boliden and the Government of British Columbia, pursuant to which Taseko assumed ownership of Gibraltar on July 21, 1999. "We view Gibraltar as a fundamentally sound acquisition that is complementary to our existing assets and strategies," Hunter said. "It will create value for Taseko shareholders, create economic opportunities for the people of the Williams Lake region and enhance the development prospects for Taseko's nearby Prosperity Gold-Copper Project." Pursuant to the terms of the acquisition, Taseko's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Gibraltar Mines Ltd., acquired mining equipment and parts valued at $19 million, an existing Government environmental deposit of $8 million, mineral interests valued at $4.7 million and will receive cash over 18 months from closing of $20.1 million of which $17 million will be included in a 10 year non-interest bearing convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued to Boliden. The principal sum advanced under the debenture is initially convertible into Taseko common shares in the first 18 months as to $5 million at Cdn. $3.14 per Taseko share and $12 million at Cdn. $3.39. The conversion price escalates Cdn. $0.25 per Taseko share each year over the 10 year term of the debenture. The debenture may be prepaid at any time. After 5 years the debenture can be converted at Taseko's option at then prevailing market prices for Taseko shares. Taseko retains certain rights of first refusal respecting any proposed sale of shares acquired by Boliden under the debenture. Taseko will also issue 400,000 shares and 180,000 one year share purchase warrants exercisable at Cdn. $3.14 to arms-length persons who assisted in completing the acquisition. Hunter expressed appreciation for the commitment of the B.C. Government, particularly the Ministry of Energy and Mines, whose assistance was instrumental in completing the Gibraltar transaction. He noted that the Province has agreed to provide a Power for Jobs agreement that will ensure competitive power rates for Gibraltar, particularly during periods of low metal prices. Gibraltar is a large-scale, 35,000 tonne per day open pit copper mine. Mine operations at Gibraltar have been limited to standby care and maintenance since December 1998, due to historically low copper prices. Under normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of , it produces 80 million pounds of copper and 700,000 pounds of molybdenum molybdenum (məlĭb`dənəm) [Gr.,=leadlike], metallic chemical element; symbol Mo; at. no. 42; at. wt. 95.94; m.p. about 2,617°C;; b.p. about 4,612°C;; sp. gr. 10.22 at 20°C;; valence +2, +3, +4, +5, or +6. annually. Taseko estimates that current proven reserves at Gibraltar will sustain another 12 years of profitable mine operations, upon a return to historic average copper prices. Taseko also plans to initiate a major exploration program at the Gibraltar property, with a view to delineating significant additional deposits at higher than average grades to extend the life of the mine. "Taseko will apply its exploration expertise to enhance the value of the asset we have acquired at Gibraltar," Hunter said. "At the same time, the management team that made Gibraltar one of the most efficient large-scale open pit mines in the world is already working to enhance the design and engineering concepts being proposed for Prosperity." Hunter noted that Taseko will be tapping the operational expertise of the Gibraltar team to incorporate their experience into the Prosperity Project Feasibility Study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. . He said the synergies between the two projects - in terms of exploration and development, operations and the marketing of concentrate represent a tremendous competitive advantage for Taseko. "Given the recent improvements in global copper prices, we believe that Gibraltar will become a profitable operating mine in the foreseeable future," he said. "We also believe its acquisition has enhanced the prospects for Prosperity, and that together these projects represent significant investment, job creation and economic development potential for the provincial and local economies." Since 1972, annual production at the Gibraltar Mine has averaged 75 million pounds of copper in a 28% concentrate, five million pounds of cathode copper from a solvent extraction Solvent extraction A technique, also called liquid extraction, for separating the components of a liquid solution. This technique depends upon the selective dissolving of one or more constituents of the solution into a suitable immiscible liquid solvent. electrowinning (SX-EW) plant and 700,000 pounds of molybdenum in concentrate. In total, the mine has processed 290 million tonnes of ore grading 0.35% copper and 0.016% molybdenum. Gibraltar has employed an average of 270 workers, paid an average annual payroll of $15 million and expended some $5 million per year on goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. in the Williams Lake area since mine operations began 28 years ago. ON BEHALF OF THE BOARD Robert G. Hunter Chairman No regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities has approved or disapproved the information contained in this news release. |
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