First Quantum Acquires Control of Inmet Mining

With an offer of $5.1 billion, the Canadian mining company has finally gained control of the Cobre Panama mining project.

Thursday, March 21, 2013

As indicated by The Globe and Mail, holders of more than 61% of the shares of Inmet Mining accepted the hostile bid from First Quantum, for more than $5 billion in cash and shares.In theory, the purchase could fall if another friendly bidder appeared, but this is seems very unlikely, says the newspaper.

With this operation, which took six months of back and forth, First Quantum takes over the mining project "Cobre Panama" (Minera Panama), one of the largest undeveloped copper reserves in the world.

The project, which already has 100% financing, will be the largest initiative in Panama since the construction of the Canal, and the largest mining project in the history of Central America. It should be operational in 2016, producing 300,000 tonnes of copper over 40 years.

First Quantum hopes to reduce the cost of the project, estimated at $6.2 billion, by $1 billion, a goal seen as difficult by several analysts, who note that the company has never undertaken a project of this magnitude.

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First Quantum Insists on Purchase of IMnet

February 2013

The Board of Inmet has already rejected the first offer by First Quantum, which is now making a hostile bid, directly contacting shareholders of IMnet.

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The acquisition could help control the environmental problems of the Molejón mine in the neighboring and much larger Cobre Panama project.

The hostile bid by Inmet Mining Corp. to Petaquilla Minerals Ltd. seems to be more than the simple acquisition of a mine adjacent to its huge gold and copper mine, the Cobre Panama project.

Inmet Mining Wants to Buy Petaquilla Minerals

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The offer represents a premium of 37% compared to yesterday's closing price of Petaquilla Minerals shares on the Toronto Stock Exchange.

A statement from Inmet Mining reads:

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