Inmet Mining Corporation
TSX : IMN

Inmet Mining Corporation

November 29, 2010 23:33 ET

Inmet Mining to Consolidate Ownership of Cobre Las Cruces to 100 Percent

TORONTO, CANADA--(Marketwire - Nov. 29, 2010) - Inmet Mining Corporation (Inmet) (TSX:IMN) and an affiliate are pleased to announce that they have reached a binding agreement with Leucadia National Corporation and an affiliate (Leucadia) to acquire their 30% indirect equity interest and subordinated sponsor loans in the Cobre Las Cruces copper mine (Las Cruces) for total value of US$552 million. The purchase consideration will comprise US$150 million cash and US$330 million in common shares of Inmet. In addition, Leucadia will be released from its guarantee on US$72 million debt owed by Las Cruces to an affiliate of Inmet as a result of the re-financing of the project facility in 2009. 

Jochen Tilk, President and CEO of Inmet commented "We are pleased to consolidate our ownership in Las Cruces. Our increased exposure to copper through this world class project will create significant value for our shareholders. This commitment from Leucadia strengthens their share position, while maintaining their one Board seat."

At closing, Inmet will issue to Leucadia 5,442,413 common shares, based on the 10 day volume weighted average price of Inmet common shares on the Toronto Stock Exchange (TSX) as at the close of trading on November 26, 2010. As a result, the number of Inmet's issued and outstanding common shares will increase to 61,549,058 common shares post-closing with Leucadia holding 11,042,413 Inmet shares, or 17.94% of Inmet's issued and outstanding common shares. These shares will be subject to the current registration rights granted by Inmet to Leucadia and to a four month hold period from closing. Closing of the transaction is expected to take place on or by December 31, 2010 and is subject to receipt of TSX approval. 

The Board of Directors of Inmet (excluding the recused Leucadia representative) has unanimously approved the transaction. In approving the transaction, the Board of Directors considered a number of factors and relied, in part, on an opinion from Dundee Securities, financial advisor to Inmet, to the effect that, subject to the assumptions and conditions set forth in such opinion, the consideration being offered by Inmet to Leucadia pursuant to the transaction is fair, from a financial point of view, to Inmet.

After the transaction closes, Inmet will continue to consolidate Las Cruces for accounting purposes, but will no longer report on long term debt from non-controlling shareholder and on the non-controlling interest ($181,373,000 and $73,597,000 respectively as reported at September 30, 2010). Effective in January 2011 with Inmet's transition to IFRS, the difference between the non-controlling interest at the transaction date (as determined under IFRS) and the fair value of the consideration will be recorded to equity.

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 statements about our future financial condition, results of operations and business.

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, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

About Inmet

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: Çayeli, Las Cruces, Pyhäsalmi and Ok Tedi. We also have a 100 percent interest in Cobre Panama, a development property in Panama.

Contact Information

  • Inmet Mining Corporation
    Flora Wood
    Director, Investor Relations
    +1-416-361-4808
    www.inmetmining.com