Taseko Announces at-the-Market Offering
TASEKO ANNOUNCES AT-THE-MARKET
OFFERING
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
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
Canaccord Genuity
99 High Street
12th Floor
Boston, MA
02110
Stifel Nicolaus Canada Inc.
161 Bay Street, Suite 3800
Toronto, ON
M5J 2S1
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.
View original content:
https://www.prnewswire.com/news-releases/taseko-announces-at-the-market-offering-301815499.html
SOURCE
Taseko Mines Limited
View original content:
http://www.newswire.ca/en/releases/archive/May2023/03/c8313.html
%SEDAR: 00003212E
For further information:
on Taseko: Brian Bergot, Vice President, Investor Relations - 778-373-
4533 or toll free 1-877-441-4533
CO: Taseko Mines Limited
CNW 22:35e 03-MAY-23