VANCOUVER, Sept. 30 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE AMEX: TGB) ("Taseko" or the "Company") is pleased to announce that it has recently completed the repurchase of the remaining US$10 million of Convertible Bonds. The entire US$30 million of Convertible Bonds were repurchased from June to August out of working capital.
In September, Taseko completed two debt financings totalling C$29.0 million that will enable the Company to complete planned production enhancements at its Gibraltar Mine, as well as increase general working capital. The debt financings include a US$20.0 million increase to its existing credit facility with Credit Suisse, adding Investec Bank PLC to its lender group, and a C$7.1 million royalty financing, placed in Canada, which pays a 6% royalty. The terms of the expanded credit facility are consistent with the existing facility.
Peter Mitchell, CFO of Taseko commented, "In the last six months, under difficult financial market conditions, we have closed $50 million of debt financing and eliminated the convertible debt and associated dilution, as well as significantly reducing other short-term liabilities. Our improved balance sheet now provides financial flexibility and will allow our Gibraltar operational staff to continue to advance capital projects and cost containment initiatives, further enhancing profitability.
Mr. Mitchell continued, "Strong relationships with multiple international banks will be very important and create opportunities as we progress financing activities related to Prosperity."
President and CEO
No regulatory authority has approved or disapproved of the information
contained 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, continued availability of capital and financing, the ability to obtain and maintain required permits, including environmental, construction and mining permits 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.
SOURCE Taseko Mines Limited
For further information: For further information: on Taseko, please see the Company's website www.tasekomines.com or contact: Brian Bergot, Investor Relations, (778) 373-4545, toll free 1-800-667-2114