RE: moly production - Buzz07 - KentOf course you can copy of Sedar - just go into text mode first...
here is the Sept.30 - Material change:
September 30, 2004, Vancouver, BC - Ronald W. Thiessen, President and CEO of Taseko Mines
Limited (TSX Venture: TKO; AMEX: TGB) is pleased to announce that Taseko has concluded a Joint
Venture Operating Agreement with Ledcor Mining Ltd. (“Ledcor”) in respect of the Gibraltar copper mine,
located near Williams Lake in south-central British Columbia. This former producing mine is currently
being prepared to resume operations at the rate of 35,000 tonnes per day. The original agreement in
principle in connection with this joint venture was previously announced on June 1, 2004.
Under the joint venture, Taseko will be responsible for concentrate sales and Ledcor will be responsible
for on-site operations with the residual participating interests under the joint venture being 85% to Taseko
(though its subsidiary Gibraltar Mines Ltd.) and 15% to Ledcor. In connection with the joint venture,
Taseko has also received from Ledcor terms of lease financing arrangements for equipment being
supplied by Ledcor to the Gibraltar mining operations. Ledcor is providing important lease financing
guarantees that will allow for the timely lease by Ledcor of a new shovel and five mine-haul trucks valued
at US$18.3 million. Ledcor is entitled to certain priorities to joint venture revenues for its operating
personnel and lease costs, as well as operating efficiency bonuses.
Approximately 50% of the proceeds of the investor financing, described below, will be used to provide the
equity component of leasing costs for key operating equipment for the Gibraltar mine, including the shovel
and trucks. The balance of the investor financing will be used for working capital to sustain the mine and
re-start activities until the equipment is assembled and operational, at which time, all prior capital
payments in respect of the equipment, net of the required equity component, will be reimbursed to
Gibraltar by the equipment lessor for Ledcor.
Taseko has privately placed 8,000,000 units in its capital at a price of Cdn$1.25 per unit to a number of
accredited investors, for proceeds of Cdn$10 million. Each unit consists of one common share and a
share purchase warrant exercisable to purchase an additional common share at price of Cdn$1.40 for a
two year period from the completion of the financing on September 29, 2004. The common shares
included in the units and the shares issuable on exercise of the warrants are subject to a four-month
resale restricted period from the date of completion of the financing. The common share purchase
warrants are subject to an accelerated expiry if, at any time following the expiration of the four-month hold
period, the published closing trade price of the Taseko common shares on the TSX Venture Exchange is
equal to or greater than Cdn$2.80 for any 10 consecutive trading days. In addition to this financing
representing an important component of the equity needed for the lease financing, the investor group
participating in the financing has undertaken to provide a substantial portion of the capital requirements
for the future construction and development of a copper refinery at the Gibraltar mine site. Taseko will
also receive approximately Cdn$5 million of immediately available funds in connection with the sale of a
royalty/net profits interest in mining operations to an investment partnership, with up to a further
approximately Cdn$5 million to be received by December 15, 2004 subject to the investment partnership
raising further funding. Taseko has an option to effectively purchase these interests at a future date in
consideration of a payment commensurate with the funds received for it.