Inmet Mining Corporation

Inmet Mining Corporation

November 20, 2008 08:15 ET

Inmet to Acquire Remainder of Petaquilla Project From Teck Cominco

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2008) - Inmet Mining Corporation (TSX:IMN) announced today that Teck Cominco Limited has elected to end its participation in the Petaquilla copper project.

As a result of Teck Cominco's election, Inmet will acquire from Teck Cominco its 26 percent interest in Minera Panama, S.A. (MPSA), the Panamanian company that is the owner of the Petaquilla project. The purchase price of approximately US$30 million will be satisfied by Inmet without the need for additional payment as provided by the terms of the arrangements to proceed with the Petaquilla project between Inmet and Teck Cominco announced last March. Closing of the transaction is expected to occur in early December.

In addition to a 48 percent interest in MPSA held through wholly-owned subsidiaries, Inmet also owns a 26 percent interest in MPSA through Petaquilla Copper Ltd. As a result of its take-over bid and offer for Petaquilla Copper completed in September, Inmet currently owns approximately 95 percent of the issued and outstanding shares of Petaquilla Copper. Inmet has initiated a transaction by way of a plan of arrangement to acquire the remaining shares of Petaquilla Copper and expects to acquire such shares by early December. Upon completion of the acquisition transaction and of the purchase from Teck Cominco, Inmet will own 100 percent of the Petaquilla project.

Inmet will continue to advance the Petaquilla project but in light of the current market condition will remain prudent and disciplined in its approach in doing so by finding the right balance between advancing the project and preserving its cash.

Forward looking information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.

About Inmet Mining Corporation

Inmet is a Canadian-based global mining company that produces copper, zinc and gold. We have interests in four mining operations in locations around the world: Cayeli, Pyhasalmi, Troilus and Ok Tedi. We also have interests in three development properties, Las Cruces, Cerattepe and Petaquilla.

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Contact Information

  • Inmet Mining Corporation
    Jochen Tilk
    President and Chief Operating Officer
    (416) 860-3972