PANAMA – Inmet Mining Corp. of Toronto and Petaquilla Minerals of Vancouver have reached a commercial agreement covering their adjacent copper projects. The deal relates to aggregate procurement, land access and use, settlement of certain claims, Inmet’s waiver of royalties, and camp site procurement. Inmet said in a release the arrangement is worth up to US$150 million.
Inmet, who is developing the Cobre Panama mine, and Petaquilla, who has two producing gold mines in the country, have been at odds for over a year. Inmet tried unsuccessfully to take over Petaquilla in a quest to gain control of more land around its project. (Inmet is currently resisting the takeover efforts of First Quantum Minerals.)
The current agreement appears to be a compromise. Inmet, through its subsidiary Minera Pamana SA, will purchase between US$75 million and US$100 million worth of aggregates from Petaquilla over a three-year period. Inmet will also lease from Petaquilla certain lands that will be used for temporary and permanent camp space for Cobre Panama for an annual fee of US$1.3 million. Petaquilla has applied for exploration licenses that cover land where Inmet plans to build infrastrure for Cobre Panama. If the licensees are granted, Petquilla has agreed to assign those lands to Inmet and retain an option on those portions of the lands not used for Cobre Panama.
More information is available at InmetMining.com and Petaquilla.com