TORONTO – The directors of Inmet Mining Corp. have advised their shareholders to reject the unsolicited offer made by First Quantum Minerals of Vancouver. Inmet chairman David R. Beatty said, "…the offer fails to adequately compensate shareholders for Inmet's low risk asset base and its strong prospects for growth and value creation at Cobre Panama, which has the potential to become one of the world's largest copper mines."
The board offered several reasons for its decision. The offer undervalues Inmet's assets. The timing of the offer would deprive Inmet shareholders of the full value of bringing the Cobre Panama mine into production. The offer is below precedent transactions and does not reflect an adequate premium for Inmet. First Quantum has no experience developing projects as large as Cobre Panama in Latin America; rather First Quantum has a track record underestimating development costs and overestimating production value.
Inmet said in a news release that it continues to evaluate alternatives to Frist Quantum's offer, hinting that it may find a financially superior alternative transaction.
The details of the Inmet board's decision are available at InmetMining.com and on SEDAR.com.