Taseko Mines Ltd. on June 7 priced its previously announced offering of US$250 million aggregate principal amount of senior secured notes due 2022.
The interest on the notes will accrue at an annual rate of 8.750%, payable semiannually and will be issued at 99% of their principal amount.
The notes will be guaranteed by the company's existing and future restricted subsidiaries and will be secured by first priority liens on the shares of Taseko's wholly owned subsidiary, Gibraltar Mines Ltd., and the latter's rights under the joint venture agreement over the Gibraltar copper mine in British Columbia.
The proceeds, together with cash on hand, will be used to redeem the company's outstanding 7.75% senior notes due 2019 and to prepay a secured loan facility, including accrued interest and associated prepayment costs.
The offering is expected to close June 14.