08:36 AM EDT, 03/25/2024 (MT Newswires) -- National Bank of Canada noted Monday Taseko Mines Ltd. (TKO.TO)'s definitive agreement to acquire the remaining 12.5% interest in the Gibraltar mine from Dowa Metals & Mining Co. Ltd. and Furukawa Co. Ltd. in a deal valued at up to $142 million.

Consideration comprises total payments of $117 million over 10 years and a contingent payment of up to $25 million.

Under the terms, Taskeo will acquire Dowa and Furukawa's shares in Cariboo Copper Corp., which holds the stake in Gibraltar. As a result, Taseko will own 100% of Cariboo shares and have an effective 100% interest in Gibraltar.

The bank said the deal is structured in a way to not stress Taseko's balance sheet through the construction period of the Florence project, and will end up generating excess cash flow from Gibraltar prior to the first quarter of 2026, which coincides with the expected initial production from Florence.

National Bank gave Taseko a sector perform rating and a $2.50 price target, while noting that the company has "benefited materially from a more positive near-term macro-outlook that would benefit more copper-leveraged names."

Taseko was down 1.5% at last look in US pre-market trading.