Leases

Capital Leases

On March 30, 2011, TCM entered into an equipment financing facility, as amended from time to time (the "Equipment Facility"), pursuant to which Caterpillar Financial Services Limited ("Caterpillar") agreed to underwrite up to $132.0 million in mobile fleet equipment financing for the Mt. Milligan project. Each borrowing under the Equipment Facility represents a capital lease and has a term of 48 or 60 months. Interest on the amounts borrowed under the Equipment Facility is payable at either floating or fixed rates, at TCM's option. TCM's ability to borrow under the Equipment Facility terminates in December 2013 (or such later date as may be agreed upon by Caterpillar), and any unused commitments under the Equipment Facility will then terminate and no longer be available to TCM. At the end of each 48- or 60-month lease period, TCM has the option to purchase the underlying equipment for a nominal sum.

The Equipment Facility includes non-financial covenants, and as of March 31, 2013, TCM was in compliance with these covenants. As of March 31, 2013 and December 31, 2012, TCM had $93.1 million and $72.1 million, respectively, in outstanding borrowings under the Equipment Facility. Interest pertaining to the Equipment Facility is allocable to the cost of developing mining properties and to constructing new facilities and is capitalized until assets are ready for their intended use. For the three months ended March 31, 2013 and 2012, TCM capitalized $1.3 million and $0.2 million, respectively, of the interest and debt issuance costs associated with the Equipment Facility. For the three months ended March 31, 2013 and 2012, $0.9 million and nil, respectively, of interest related to the Equipment Facility was paid.

During the first quarter of 2013, TCM entered into a sale-leaseback transaction with Caterpillar with respect to certain equipment pursuant to the Equipment Facility. As of March 31, 2013, TCM had received $27.3 million in cash from Caterpillar for the sale of equipment, which was subsequently leased back. Interest payments are based on a fixed rate. The lease is considered to be a capital lease resulting in an increase to TCM's capital lease obligation of $24.6 million after an upfront payment of $2.7 million.

TCM's total capital lease obligations consist of the following:



(in millions)	March 31, 2013		December 31, 2012
Capital leases	$	28.2	$	29.8
Sales-leaseback	64.9		42.3
Total	$	93.1	$	72.1