Inmet to Acquire Remainder of Petaquilla Project from Teck Cominco
Inmet Mining Corporation announced that Teck Cominco Limited has elected to end its participation in the Petaquilla copper project.
As a result of Teck Cominco’s election, Inmet will acquire from Teck Cominco its 26 percent interest in Minera Panama, S.A. (MPSA), the Panamanian company that is the owner of the Petaquilla project. The purchase price of approximately US$30 million will be satisfied by Inmet without the need for additional payment as provided by the terms of the arrangements to proceed with the Petaquilla project between Inmet and Teck Cominco announced last March. Closing of the transaction is expected to occur in early December.
In addition to a 48 percent interest in MPSA held through wholly-owned subsidiaries, Inmet also owns a 26 percent interest in MPSA through Petaquilla Copper Ltd. As a result of its take-over bid and offer for Petaquilla Copper completed in September, Inmet currently owns approximately 95 percent of the issued and outstanding shares of Petaquilla Copper. Inmet has initiated a transaction by way of a plan of arrangement to acquire the remaining shares of Petaquilla Copper and expects to acquire such shares by early December. Upon completion of the acquisition transaction and of the purchase from Teck Cominco, Inmet will own 100 percent of the Petaquilla project.
Inmet will continue to advance the Petaquilla project but in light of the current market condition will remain prudent and disciplined in its approach in doing so by finding the right balance between advancing the project and preserving its cash.