Taseko Receives Approvals for US$100 Million in Additional Financing for Florence Copper

7 November 2023

Taseko Mines Limited is pleased to provide an update on two additional financing transactions, totalling US$100 million, for its Florence Copper Project in Arizona, USA. The Company has been notified that Taurus Mining Royalty Fund L.P. ("Taurus") has obtained investment committee approval for a US$50 million royalty, and Societe Generale has received credit approval for a US$50 million senior secured debt facility. Upon closing and satisfaction of conditions precedent, proceeds from these project level financings will be available to Florence Copper to fund the construction and development of the commercial production facility.

Stuart McDonald, President and CEO of Taseko, commented, "The Taurus royalty and the project loan facility from Societe Generale complement the previously announced commitments from Mitsui and Bank of America. A total of US$175 million from these four well-regarded industry participants is a strong endorsement of Florence Copper's technical merits, attractive economics, and favorable environmental attributes."

"Florence Copper will supply 85 million pounds of copper, now defined a critical material by the Department of Energy, to the US domestic market. With the permitting process complete and these new financings expected to close in the coming months, we can now begin construction of the commercial facility at Florence," concluded Mr. McDonald.

Additional Florence Financing Details
Florence Project Royalty

The US$50 million royalty ("Royalty") has received investment committee approval from Taurus. The Royalty will be for 1.95% of the gross revenue from the sale of all copper from Florence Copper for the life of mine. The US$50 million of consideration is payable upon the satisfaction of customary conditions precedent for closing. The Royalty will be registered on title and will otherwise be unsecured.

Senior Secured Project Loan Facility

The US$50 million senior secured debt facility will be provided by Societe Generale subject to completion of definitive documentation and the satisfaction of conditions precedent. The facility also contains a US$25 million uncommitted accordion feature which can be exercised by the Company in the future to increase its size to US$75 million if needed, subject to additional credit approval at that time.

The maturity date of the Florence debt facility will be five years from the date of closing, with no scheduled principal repayments until the maturity date when any outstanding amounts will be repayable. The facility contains covenants and restrictions customary for a project loan facility. The facility will have a first lien charge over the assets of Florence and an unsecured guarantee from the Company until completion. Societe Generale's credit approval will be formalized in a commitment letter containing customary conditions.

Endeavour Financial is acting as the Company's financial adviser in connection with these transactions.