By: Henry Lazenby
16th October 2012
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TORONTO (miningweekly.com) – TSX-listed Inmet Mining on Tuesday said it was prepared to let its C$109-million hostile bid for Panama-focused miner Petaquilla Minerals expire, owing to not needing revenue from Petaquilla’s Molejon mine to see its flagship Cobre Panama copper/gold project through to production. In a statement issued in response to Petaquilla’s recent directors’ circular which rejected Inmet’s offer, which represented a 37% premium to Petaquilla’s share price at the time the offer was made, Inmet said Petaquilla’s board had made no new information available that would warrant a change in the offer. “During the limited interaction between Petaquilla and Inmet, Petaquilla management showed no interest in pursuing Inmet's offer on a friendly basis. Given the status of these interactions and the absence of a viable alternative, shareholders should consider the impact on the Petaquilla share price in the event the Inmet offer does not proceed,” Inmet CEO Jochen Tilk said in a statement. Tilk said the offer still eliminated significant risks to Petaquilla shareholders, given the short remaining mine life of its Molejon operation, and that If Petaquilla's shareholders opted for Inmet shares, they would obtain upside exposure to the development of Cobre Panama, one of the world's largest copper projects currently under construction. |