Sojitz to Get First Cu Interest by JV with Canadian Miner

Sojitz Corporation signed letter of intent with Taseko Mines of Canada to establish joint venture for Taseko Mines’ Gibraltar copper/molybdenum mine in British Columbia by early 2010. Sojitz will pay around C$ 180 million to get 25% interest in the venture. Sojitz started due diligence for the venture. The firm tries to acquire the first copper equity for better metal assets portfolio.

They will reach final agreement for the joint venture after Sojitz’s due diligence and board approval. Sojitz will have more than 11,000 tonnes per year of copper interest and increase molybdenum interest from current 2.5 million pounds to 2.78 million pounds.

Taseko Mines produces annual 100 million pounds of copper and 1.1 million pounds of molybdenum at Gibraltar mine. The firm expands the copper production to 115 million pounds in 2011 and extends the mine life from current 26 years.

Taseko Mines expects the transaction will contribute the development of Prosperity gold/copper project in British Columbia, which is Canadian largest undeveloped mine with 5.3 billion pounds of copper and 13.3 million ounces of gold resources.