TASEKO ANNOUNCES OFFERING OF US$500 MILLION OF SENIOR SECURED NOTES DUE 2030

Rhea-AI Summary

Taseko Mines (TGB) announces a $500 million offering of Senior Secured Notes due 2030 to redeem existing notes and fund various projects. The Notes are unregistered and targeted towards qualified institutional buyers in the US and non-US persons outside the US.

Financial Analyst

Taseko Mines Limited's commencement of a $500 million Senior Secured Notes offering signals a strategic move to refinance existing debt and fund capital expenditures. The redemption of the 7.00% Senior Secured Notes due in 2026 suggests an attempt to capitalize on potentially lower interest rates or more favorable terms, which could reduce interest expenses and improve the company's debt profile.

Investors should note the potential for dilution of existing securities, as the new issuance may increase the company's leverage. However, the capital injection into projects like the Florence Copper project and Gibraltar mine indicates a focus on growth and may lead to increased production capacity. The long-term implications of these investments could result in enhanced revenue streams and a stronger market position.

Market Research Analyst

The decision to offer the Notes exclusively to qualified institutional buyers and non-U.S. persons suggests a targeted approach to fundraising, possibly aiming to attract investors with a long-term interest in the mining sector. The exclusion of a prospectus in Canada and the non-registration under the U.S. Securities Act highlight the specific legal and regulatory pathways Taseko is navigating.

Market conditions will dictate the final terms of the Notes, which could affect investor appetite. It's essential to monitor the response from the institutional community, as it will provide insights into market perceptions of Taseko's creditworthiness and the attractiveness of the mining industry as a whole.

Legal Expert

The legal framework surrounding the offering is complex due to the exemptions from registration and prospectus requirements. Potential investors must be aware of the restrictions on the sale and transfer of the Notes, as they are subject to specific conditions under Rule 144A and Regulation S. This could impact the liquidity and marketability of the Notes, influencing their appeal to certain investors.

The absence of a regulatory authority's endorsement also places additional onus on investors to conduct thorough due diligence. The forward-looking statements disclaimer underscores the inherent uncertainties and risks associated with such investments, which should be carefully considered alongside the company's strategic intentions and market position.

VANCOUVER, BC, April 8, 2024 /PRNewswire/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko") today announced that it has commenced an offering of US$500 million of Senior Secured Notes due 2030 (the "Notes"). The aggregate principal amount, interest rate and other terms of the Notes will be determined at pricing and are dependent upon market conditions and other factors. Taseko intends to use the net proceeds from this offering, together with cash on hand, to redeem its outstanding 7.00% Senior Secured Notes due 2026 (the "Existing Notes"), to make capital expenditures, including at its Florence Copper project and Gibraltar mine, as working capital and for general corporate purposes and to pay fees and expenses in connection with this offering. The Notes will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. The Notes will not be qualified by a prospectus in Canada. Unless they are registered or qualified by a prospectus, the Notes may be offered and sold only in transactions that are exempt from registration requirements and from prospectus qualification under Canadian securities laws. In the United States, the Notes will be offered and sold only to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) and outside the United States, to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes, the Existing Notes or any other securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, the Notes, the Existing Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release does not constitute a notice of redemption with respect to the Existing Notes.

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 and forward-looking information (collectively referred to as "forward-looking statements"), within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and 21E of the U.S. Securities Exchange Act of 1934, as amended, which may not be based on historical fact, including without limitation statements regarding Taseko's expectations in respect of future financial position, business strategy, future production, reserve potential, exploration drilling, exploitation activities, events or developments that Taseko expects to take place in the future, projected costs and plans and objectives. Often, but not always, forward-looking statements can be identified by the use of the words "believes," "may," "plan," "will," "estimate," "scheduled," "continue," "anticipates," "intends," "expects," "aim" and similar expressions.

Such statements reflect Taseko's current views with respect to future events and are subject to risks and uncertainties. These statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Taseko's actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including those contained in Taseko's filings. For general information on Taseko, review the documents that Taseko has filed with or furnished to the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedarplus.ca.

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SOURCE Taseko Mines Limited

FAQ

What type of notes is Taseko Mines offering?

Taseko Mines is offering Senior Secured Notes due 2030.

What is the purpose of the $500 million offering?

The offering aims to redeem existing 7.00% Senior Secured Notes due 2026, fund capital expenditures, including at the Florence Copper project and Gibraltar mine, and cover general corporate purposes.

Are the Notes registered under the U.S. Securities Act of 1933?

No, the Notes will not be registered under the U.S. Securities Act of 1933.

Who can purchase the Notes in the United States?

The Notes will be offered and sold only to qualified institutional buyers as defined in Rule 144A under the Securities Act.

Where can the Notes be sold outside the United States?

Outside the United States, the Notes can be sold to non-U.S. persons in compliance with Regulation S under the Securities Act.