Taseko Mines (TSX, LON: TKO) (NYSE: TGB) announced on Monday its acquisition of the remaining 12.5% interest in the Gibraltar mine, Canada's second-largest open-pit copper operation, from current stakeholders Dowa Metals & Mining and Furukawa. This strategic move is expected to enhance the Canadian miner's copper production by 14% and bolster cash flow as the company advances with construction at the Florence copper project in Arizona, stated CEO Stuart McDonaldAccording to the definitive agreement, Taseko will disburse C$117 million ($86.1 million) over a span of ten years to acquire the shares owned by Dowa and Furukawa in Cariboo Copper Corp. Through this acquisition, the Vancouver-headquartered company will assume full ownership of Cariboo Copper Corp, thereby obtaining a complete 100% stake in Gibraltar situated in south-central British Columbia. Additionally, it grants Taseko additional offtake rights as the Cariboo offtake contract reverts to Taseko, potentially leading to cost savings, according to McDonald.

In addition to the initial payment of C$5 million ($3.7 million) to Dowa and Furukawa (C$2.5 million each) upon closing the deal, Taseko may be obligated to make contingent payments based on copper prices and Gibraltar’s cash flow, the company disclosed. McDonald commented, "Over the past 14 years, we have fostered a positive relationship with Dowa and Furukawa. Considering their shift away from copper smelting operations and divestment from copper mining ventures, we have arranged this departure from our longstanding partnership in a manner that benefits both parties." Earlier in the current month, the corporation announced its record-breaking revenue of $525 million for the fiscal year 2023, predominantly driven by the performance of the Gibraltar mine. This revenue marked a 34% increase compared to 2022. In 2023, the mine yielded a total of 122.6 million pounds of copper, with an average copper recovery rate of 82.6% and head grade of 0.25%. This production exceeded the company’s original guidance and represented a 26% increase from 2022. Taseko is also nearing the commencement of production at Florence, expected to commence in the fourth quarter of 2025.

Based in Vancouver, British Columbia (BC), Canada, Taseko Mines Limited (Taseko) stands as a dynamic North American mining entity dedicated to unlocking the inherent value of copper for its stakeholders amid a dynamic and evolving global landscape. Recognizing the pivotal role of metals in facilitating the transition to a low-carbon future, Taseko is committed to seizing opportunities and creating lasting value through the development and operation of top-tier copper mines and mineral properties in British Columbia and Arizona. Taseko's strategic approach revolves around sustainable and profitable growth, centering on the ongoing operations of its foundational asset, the Gibraltar Mine in central BC, alongside the progression of Florence Copper in Arizona as North America's upcoming copper producer. Additionally, Taseko is actively advancing a portfolio of high-caliber, advanced-stage development projects, including the Yellowhead copper project and the Aley niobium project. At the core of Taseko's ethos lies a commitment to operational excellence, prioritizing safety, and delivering comprehensive value across all facets of its operations.