Taseko Sells Gibraltar Stake To Sojitz For $180M

Taseko Mines (TKO-T, TGB-X) is in the money.

The Vancouver-based junior is entering the big time with the announcement that it has sold a chunk of its Gibraltar mine, in south-central B.C., to Japanesebased trader Sojitz.

The deal will see Sojitz gain a 25% stake in Gibraltar — which is currently being expanded and modernized — by paying Taseko $180 million. Taseko currently has a 100% stake in Gibraltar, and will retain its status as operator in the mine after the deal with Sojitz goes through.

Taseko says it plans to use the influx of money to fund its Prosperity gold and copper project, in B.C.

The company calls the deal “an important step” in the company’s evolution, as it will give it a key strategic alliance, while confirming the value of Gibraltar.

Sojitz is a diversified trading company with interests in machinery, energy and metals, chemicals and consumer products.

Over the past two years, Taseko has spent roughly $250 million on upgrading facilities at Gibraltar.

By the end of 2010, it expects to be producing 115 million lbs. of copper and 1.1 million lbs. of molybdenum per year for 26 years.

Those impressive numbers are to be generated from an orebody with proven and probable reserves of 428 million tonnes grading 0.315% copper and 0.008% molybdenum for 2.7 billion lbs. of recoverable copper.

As for its other key project in south-central B.C., Prosperity, the company says the $180 million represents a significant part of the capital it needs to build a new mine there. Prosperity hosts a large porphyry gold-copper deposit for which Taseko completed a feasibility study in 2007.

The study estimated a 20-year mine life at a milling rate of 70,000 tonnes per day producing 247,000 oz. gold and 108 million lbs. copper per year, with a low strip ratio of 0.8:1.

The project has proven and probable reserves of 487 million tonnes grading 0.43 gram gold and 0.22% copper.

In Toronto on the news, Taseko shares shot up 13% or 40¢ to $3.60 on 3.84 million shares traded. The stock has traded in a 52-week window of 66¢-$4.45.