Taseko Mines has signed agreements with Mitsui & Co. to form a strategic partnership to develop the company's Florence Copper project, located in Arizona.
Mitsui has committed to an initial investment of $50 million, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement on 2.67 percent of the copper produced at Florence Copper.
In addition, Mitsui has the option to invest an additional $50 million (for a total investment of $100 million) for a 10 percent equity interest in Florence Copper. The equity interest option is exercisable by Mitsui within a three-year period following completion of construction of the commercial production facility. If Mitsui elects to exercise its equity interest in Florence Copper, the copper stream agreement will terminate.
As part of the arrangement, Taseko and Mitsui have entered into an offtake contract for 81 percent of the co
