Taseko Reduces Long-term Debt & Extends Copper Hedge



    VANCOUVER, June 30 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE Amex:  
TGB) ("Taseko" or the "Company") is pleased to announce that it has purchased
US$17.5 million of its convertible bond from two holders.
    The five-year bonds which were issued in August 2006 have a conversion
price of US$3.35 per share and carry a coupon of 7.125%. While the bonds do
not mature until 2011, the bondholders hold a one time right to redeem the
bond at 100.60% in August 2009. Taseko has taken this initiative in
anticipation the bondholders would exercise this option.
    Peter Mitchell, CFO of Taseko stated, "Based on our current cash position
and forecasted cash flow, we feel the prepayment of these bonds, at a
discount, was a prudent step for Taseko to take. In addition to reducing this
liability, the transaction also decreases the dilutive effects of the bonds by
5.2 million shares. We will continue to evaluate options in anticipation of
the put of the remaining US$12.5 million of convertible bonds and are
confident that a plan will be finalized in advance of the August put option
date."
    Mr. Hallbauer, President & CEO of Taseko, continued, "Our forecasted cash
flow is secured by the hedge facility that was established in May of this
year. Under the hedge Taseko will receive a minimum price of US$1.88 per pound
on 50% of copper production through December 2009, or 30 million pounds, Given
the recent copper pricing strength, we have extended the term of the hedge
through March 2010 with a new minimum price of US$2.00, at the same 50%
level."

    
    Russell Hallbauer
    President and CEO

         No regulatory authority has approved or disapproved of the
                      information in this news release.

                         Forward Looking Statements
    

    This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements. Although
the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include capital market conditions, commodities market prices,
exploitation and exploration successes, lack of continuity of mineralization,
completion of the mill upgrade on time estimated and at scheduled cost,
continued availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
annual Form 40-F filing with the United States Securities and Exchange
Commission or the Company's home jurisdiction filings at www.sedar.com.





For further information:

For further information: Brian Bergot, Investor Relations, (778)
373-4545, toll free 1-800-667-2114


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