Petaquilla Copper Ltd. Preliminary Response to Inmets Bidadmin
On July 6, 2008, Inmet Mining Corporation announced that it intends to make an all-cash offer (the “Offer”) for all of the outstanding common shares of Petaquilla Copper Ltd. (the “Company”) (Toronto:PTC.TO) at a price of $2.00 per share.
Until the Offer is formally commenced and has been reviewed, the Board of Directors is unable to comment on the Offer. However, the Board notes that even Inmet accepts that the bid price is inadequate. Richard Fifer, the Chief Executive Officer of the Company, observed that “the Financial Post of July 8, 2008, states that Inmet’s Chief Operating Officer, Jochen Tilk, acknowledged that Inmet’s $2-a-share offer is ‘opportunistic’”.
Richard Fifer also stated that “the Offer would not appear to meet the conditions of a Permitted Bid under the Company’s Shareholder Rights Plan dated June 6, 2006, and unless the Offer is modified the plan could become operative”.
The Company is carrying on business in the normal course, which includes the on-going consideration of strategic alternatives to the Offer. The Board of Directors has appointed a Special Committee comprising Dr. Marcel Salamin and Dale Lucas to review the Offer, when made, and to make recommendations to the Board. In addition, the Company has engaged the services of Kingsdale Shareholder Services Inc. (“Kingsdale”) as its Information Agent with respect to the Offer. Shareholders with questions should contact Kingsdale at toll-free 1-866-581-0507 or 1-416-867-2272.
As previously announced in the Company’s news release dated April 29, 2008, the Company has commenced arbitration proceedings against Teck Cominco Ltd. (“TCL”) on the basis that TCL has failed to satisfy the conditions necessary to earn a 26% interest in the Petaquilla Copper Property. If the arbitration proceedings are resolved in the Company’s favour, the Company will acquire a 52% participating interest in the Property and Inmet will hold a 48% interest.
About Petaquilla Copper Ltd. -Petaquilla Copper Ltd. is a resource development company headquartered in Vancouver, Canada. Its shares are listed on the Toronto Stock Exchange under the symbol PTC. Petaquilla Copper Ltd also owns 49% of the issued shares of Petaquilla Infrastructure Ltd, a company incorporated to manage and expedite the development of the power, port and related infrastructure in support of the Molejon Gold Mine of Petaquilla Minerals Ltd. and the future development of the Petaquilla Copper mine.
On behalf of the Board of Directors of PETAQUILLA COPPER LTD.
Richard Fifer, Chief Executive Officer and Director
Contacts: Petaquilla Copper Ltd. Richard Fifer Chief Executive Officer and Director (604) 694-0021 or Toll Free: 1-877-694-0021 (604) 694-0063 (FAX)
Source: Petaquilla Copper Ltd.