Taseko Mines Limited

Taseko Mines Limited

August 24, 2006 17:17 ET

Taseko Prices US$30 Million Convertible Bond Issue at a 40% Premium Over Recent Trading Price, and Sets Completion Date

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2006) - Taseko Mines Limited (TSX:TKO)(AMEX:TGB) ("Taseko" or "the Company") announces the final pricing of US$30 million in principal amount of five year convertible bonds due in 2011 (the "Bonds") to qualified institutional buyers outside of North America. The Bonds will be convertible into Taseko's common (ordinary) shares. The Bonds will constitute direct, unsubordinated, unsecured, general and unconditional obligations of Taseko.

The five-year Bonds are issued at 100% and, if not converted, redeemed at maturity at 101%. The Bonds carry a coupon of 7.125%. The Bonds will be convertible after 40 days from issuance until August 30, 2011 into up to 8,955,224 ordinary shares of Taseko at a conversion price of US$3.350 (C$3.726), an approximate premium of 40% over recent trading prices of Taseko shares. At any time after year two, the Company will have the right to call for the conversion of the Bond into the number of shares as set out above, when Taseko shares are trading at least 50% above the conversion price. At year three, the Bondholders have a one time right to redeem the Bond at 100.60%.

The net proceeds from the issue will be used for further investments into the Company's producing assets. The Bonds will also provide flexibility and diversity to Taseko's funding mix on preferential terms. Upon conversion, the Bonds will reduce debt levels and fortify the equity base while minimizing existing shareholders' dilution.

The Bonds will not be registered under U.S. Securities Act of 1933, and have been offered to investors outside the United States in compliance with Regulation S of that Act and in compliance with the laws and regulations applicable in each country where the offering takes place. Settlement is expected on or about August 29, 2006. The resale of any Taseko shares issued on a Bond conversion prior to December 29, 2006 will be restricted in Canada until that date.

HVB Corporates & Markets acted as Sole Lead Manager and Sole Bookrunner on the transaction.

Russell Hallbauer, President & CEO

About Taseko Mines Limited

Taseko is positioned to provide immediate returns and longer term growth through its large scale, long life Gibraltar copper-molybdenum mine; its advanced stage Prosperity gold-copper project on which feasibility-level studies are underway; and its Harmony property that hosts a large gold deposit with longer term development potential. All are located in British Columbia, Canada.

This announcement does not constitute an offer of securities for sale and appears as a matter of record only. All of these securities have been sold. No stock exchange or regulatory authority has approved or disapproved of the contents of this press release.

This news release contains forward-looking statements such as the completion of a financing that are based on current expectations and which involve risks and uncertainties, including those referred to in Taseko's Annual Information Form filed with Canadian securities regulatory authorities, or Taseko's annual Form on 20F filed with United States securities regulatory authorities, that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in the forward-looking statements. Such forward-looking statements include statements regarding the likelihood of the completion of a financing.

For further information about Taseko and the investment risks inherent in its business, investors should review the Company's Canadian public filings at www.sedar.com or its US public filings at www.sec.gov or the Company's website at www.tasekomines.com.

Bayerische Hypo- und Vereinsbank AG is acting for Taseko Mines Limited and no one else in connection with the offering of the Bonds and will not be responsible to any person other than Taseko Mines Ltd. for providing the protections afforded to its clients nor for providing advice in relation to the offering of the Bonds.

Bayerische Hypo- und Vereinsbank AG is not acting as financial adviser to any bondholder nor in a fiduciary capacity in respect of the issue of the Bonds. Accordingly, you must independently determine, with your own advisors, the appropriateness for you of the Bonds before investing or transacting. Bayerische Hypo- und Vereinsbank AG and its subsidiaries and affiliates may perform services or solicit business from the Issuer, may make markets in such securities and/or have a position or effect transactions in securities, identical or similar to those described herein.

Contact Information

  • Taseko Mines Limited
    Shawn Wallace
    Invester Relations
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)