Multi Billion Dollar Bid for Minera Panama

Inmet Mining, which owns the copper mining megaproject in Panama, has rejected a $4.89 billion takeover bid.

Thursday, November 29, 2012

First Quantum Minerals Ltd, a larger mining company based in Canada, made an unsolicited offer of $4.89 billion, or $70 per share for Inmet Mining, which was rejected by its board, for being "highly conditional" and not in the best interest of its shareholders.

In October, First Quantum had made an initial private offer of $62.50 per share, which was also rejected. Yesterday, in a press release, Inmet released the details of both offers.

According to the financialpost.com, with this aggressive move, First Quantum is seeking to gain control of Cobre Panama (Minera Panama), "one of the biggest mining projects in the world."

First Quantum actions, "puts Inmet’s immediate future into question, as the company is now in play and senior copper miners are certain to take a closer look at Cobre Panama."

The mine operation, with a current cost estimate of $6.2 billion, has 32,000 million pounds of copper and 9 million ounces of gold in reserves and an estimated life span of 30 years.

According to various analysts, the fact that the Inmet Mining bid has been made public indicates that there could be a formal offer soon, which is likely to spark a bidding war between major mining corporations such as Teck Resources Ltd, Freeport-McMoRan Copper & Gold and Asian state run companies.



More on this topic

Minera Panama's Concession Renewed

August 2017

The Varela administration has extended the concession authorizing Minera Panama to extract copper from the mine at Donoso, in the province of Colón for a further 20 years.

The concession granted by the Ministry of Commerce and Industries is for an area of almost 13 thousand hectares, and will be in force until February 28, 2037.  

First Quantum Suspends Cobre Panama Mine Contracts

April 2013

Following the acquisition of Inmet Mining, the former owner of the mega mining project in Panama, First Quantum has suspended construction contracts with SNC-Lavalin, for $120 million.

A statement by SNC-Lavalin notes that, "First Quantum Minerals, which recently acquired a majority stake in Inmet Mining Corporation (Inmet), and took control of the Cobre Panama project, typically directs and executes its projects based on direct internal recruitment procedures, looking for external experience only when necessary. "

First Quantum Acquires Control of Inmet Mining

March 2013

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

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.

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.

Panamaamerica.com.pa reports that "... The multinational is seeking to gain control of the two mines operating in Panama, in a transaction that would exceed 5 billion dollars.

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