Trekor Metals Ltd

The company announced the closing of a bought deal share financing with gross proceeds of US$170 million. The text provided gives no share count, price or use of proceeds. Shareholders are diluted by newly issued shares (inference, as share terms are not shown). It follows the company's earlier debt refinancing.

capital raising announcement

The company completed its US$500 million offering of 8.250% Senior Secured Notes due 2030. Part of the proceeds will redeem the US$400 million notes due 2026, and the rest, after costs and accrued interest, is available for capital spending, working capital and general purposes. The CEO says the notes add financial flexibility as Florence construction advances. This completes the offering priced April 9; the filing says the 2026 notes will be redeemed but does not say redemption has happened.

debt financing

On April 8 the company launched an offering of US$500 million of Senior Secured Notes due 2030, with the rate and other terms to be set at pricing. Proceeds and cash on hand are intended to redeem the existing 7.00% notes due 2026, fund capital spending at Florence Copper and Gibraltar, and cover working capital and general costs. This starts the refinancing of the February 2021 notes, and the release says it is not a redemption notice.

debt financing

The company priced US$500 million of Senior Secured Notes due 2030 at par with an 8.25% annual interest rate, expected to close April 23, 2024. Proceeds plus cash on hand are meant to redeem all US$400 million of the 7.0% notes due 2026 (the 2026 notes), and to fund spending at Florence and Gibraltar and for working capital. The new notes carry junior-priority liens on the shares of Gibraltar Mines, Curis, Florence Holdings and Cariboo Copper, and on Gibraltar's rights under the joint venture agreement. The release calls Cariboo a wholly-owned subsidiary, which may suggest (inference) the Dowa/Furukawa purchase has closed, though no closing is reported. This prices the refinancing launched the day before; the release says it is not a redemption notice.

debt financing

The company signed a definitive agreement to buy the remaining 12.5% of Gibraltar from Dowa and Furukawa, the other owners of Cariboo Copper, which would give it 100% effective ownership. The minimum price is C$117 million over ten years (C$5 million shortly after closing, then annual payments from March 2026, with a balloon in March 2034), and total consideration is capped at C$142 million. The minimum payments are loans to Cariboo guaranteed by the company and partly secured on Cariboo's 25% Gibraltar JV interest, and the Cariboo offtake contract (30% of concentrate) ends, returning full marketing rights to the company. The filing describes this as a signed agreement and does not say it has closed.

business combination

The EPA issued the final Underground Injection Control permit for Florence Copper, the permit that had been pending since the 2021 draft and the 2022 comment period. The company says it can now start building the commercial facility, and that it is still talking to potential lenders and royalty providers for the rest of the financing, with additional commitments expected before construction spending ramps up. It cites 85 million pounds a year of capacity, US$1.11 per pound C1 cash costs, a 22-year mine life and an after-tax NPV (8%) of US$930 million at US$3.75 copper, based on a March 2023 technical report. This should also make the first US$10 million of the Mitsui stream available, though the filing does not say so.

regulatory community update

The company completed the purchase of Sojitz's 50% of Cariboo Copper and now holds an effective 87.5% interest in Gibraltar. C$10 million was paid at closing, and the remaining minimum is C$10 million a year over the next five years, plus possible contingent payments. This closes out the Sojitz deal signed on Feb 22.

business combination

The company signed a definitive agreement to buy Sojitz's 50% of Cariboo Copper, which would lift its effective Gibraltar interest from 75% to 87.5%. The price is a minimum C$60 million over five years (C$10 million at closing, then C$10 million a year, no interest) plus contingent payments capped at C$57 million, so the maximum cost is C$117 million. This turns the confidential talks disclosed on Feb 3 into a signed deal; closing still needs regulatory approvals and other customary conditions.

business combination

The company confirmed confidential talks with Sojitz about buying Sojitz's 50% stake in Cariboo Copper, the 25% Gibraltar joint venture partner, which equals a 12.5% effective interest in Gibraltar. The deal as contemplated has a modest upfront payment from cash plus annual payments over five years (a guaranteed minimum and contingent amounts tied to Gibraltar copper revenue). No binding agreement exists and it needs board, regulatory and other approvals, so this opens a possible increase in the company's Gibraltar share.

business combination

The company signed agreements with Mitsui & Co. (U.S.A.) to partner on Florence Copper. Mitsui commits US$50 million through a copper stream on 2.67% of Florence copper, with the first US$10 million available after the final UIC permit and further US$10 million instalments each quarter. Mitsui can invest another US$50 million within three years of construction completion for a 10% equity interest in Florence, which would end the stream, and it also gets an offtake for 81% of the cathode in the initial years. This answers the open question about remaining Florence funding and a possible joint venture partner; the final EPA permit is still pending.

joint venture update

The EPA publicly issued a draft Underground Injection Control permit for Florence Copper. A 45-day public comment period ends September 29, with a virtual public hearing on September 15. Management calls this the final key permit needed to build and run the commercial facility and expects approval in the coming months. This continues the permitting thread from the November 2021 initial draft; the final permit has not been issued.

regulatory community update

The company reported a new Gibraltar proven and probable sulphide reserve of 706 million tons, a 40% increase as of December 31, 2021, extending the mine life to 23 years. The release gives 3.0 billion pounds of recoverable copper and an after-tax NPV8 of C$1.1 billion on the company's 75% share at a long-term copper price of US$3.50 per pound. Management says the next five years of the mine plan are unchanged, at about 128 million pounds of copper a year. The reserve increase is tied to a higher long-term copper price assumption (US$3.05 per pound, previously US$2.75) and updated pit designs.

resource reserve update

The EPA gave the company an initial draft of the Underground Injection Control permit for Florence Copper in Arizona. Company review is due within two weeks, after which a public comment period is expected. The company says it will be ready to build the commercial facility immediately after the final permit issues. This continues the permitting thread from October; the final permit is not yet issued.

regulatory community update

The company signed a US$50 million revolving credit facility arranged by National Bank of Canada, with an initial 42-month term, secured by first liens on its Gibraltar joint venture rights and shares of Gibraltar Mines, Curis Holdings (Canada) and Florence Holdings. It does not plan to draw on it at closing. Management says it expects to fund Florence construction from Gibraltar cash flow and existing cash, and that the EPA intends to send a draft Underground Injection Control permit in mid-October, the final permitting step before construction.

debt financing

The company completed a US$400 million offering of 7.0% Senior Secured Notes due February 2026. Part of the proceeds will redeem the US$250 million 8.75% notes due 2022 from the 2017 refinancing; about US$131 million remains for capital spending, working capital and general purposes. Management says it has about US$200 million cash, no significant debt maturities until 2026, and is moving ahead with the Florence Copper commercial facility, estimated at US$230 million, while still discussing joint venture partners. This replaces the 2017 notes and adds Florence Holdings and Curis shares to the security.

debt financing

Cover filing for a November 11, 2020 news release announcing a US$23 million bought deal (a share sale underwritten by dealers) plus up to US$2 million in a concurrent private placement. The filing text contains only the headline, so use of proceeds and pricing are not stated.

capital raising announcement

The refinancing closed: US$250 million of 8.75% Senior Secured Notes due June 2022 were issued. With US$54.5 million of cash, proceeds funded redeeming the 2019 notes (US$203.8 million), repaying the secured credit facility (US$79.4 million), buying out the lender's copper call option (US$11.9 million) and estimated costs of US$6.9 million. The company says this reduces total debt and pushes maturity out to 2022, resolving the thread opened in May.

debt financing

The US$250 million Senior Secured Notes due 2022 were priced at an 8.750% annual interest rate and issued at 99% of face value, with closing expected June 14, 2017. The notes are secured by first-priority liens on the shares of subsidiary Gibraltar Mines Ltd. and its rights under the Gibraltar mine joint venture agreement. Proceeds will also cancel a copper call option held by the secured loan lender, in addition to redeeming the 2019 notes and prepaying the loan. This continues the refinancing announced May 30.

debt financing

The company (filings are in the name of Taseko Mines Limited, listed as Trekor Metals Ltd in our records) announced it has started offering US$250 million of Senior Secured Notes due 2022. Proceeds plus cash on hand are meant to redeem its 7.75% Senior Notes due 2019 and prepay its secured loan facility; the interest rate and final terms were not yet set.

debt financing