June 30, 2009
June 30, 2009, Vancouver, BC - Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) (“Taseko” or the “Company”) is pleased to announce that it has purchased US$17.5 million of its convertible bond from two holders.
The five-year bonds which were issued in August 2006 have a conversion price of US$3.35 per share and carry a coupon of 7.125%. While the bonds do not mature until 2011, the bondholders hold a one time right to redeem the bond at 100.60% in August 2009. Taseko has taken this initiative in anticipation the bondholders would exercise this option.
Peter Mitchell, CFO of Taseko stated, “Based on our current cash position and forecasted cash flow, we feel the prepayment of these bonds, at a discount, was a prudent step for Taseko to take. In addition to reducing this liability, the transaction also decreases the dilutive effects of the bonds by 5.2 million shares. We will continue to evaluate options in anticipation of the put of the remaining US$12.5 million of convertible bonds and are confident that a plan will be finalized in advance of the August put option date.”
Mr. Hallbauer, President & CEO of Taseko, continued, “Our forecasted cash flow is secured by the hedge facility that was established in May of this year. Under the hedge Taseko will receive a minimum price of US$1.88 per pound on 50% of copper production through December 2009, or 30 million pounds, Given the recent copper pricing strength, we have extended the term of the hedge through March 2010 with a new minimum price of US$2.00, at the same 50% level.”
For further information contact:
Brian Bergot, Investor Relations
Direct: 778-373-4545 | Toll Free: 1-800-667-2114
Russell Hallbauer
President and CEO
No regulatory authority has approved or disapproved of the information contained in this news release.
This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:
For further information on Taseko, investors should review the Company’s annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedar.com.