Inmet Mining Corp. said it anticipates mailing a formal C$112 million ($114.6 million) bid for Petaquilla Minerals Ltd. to Petaquilla shareholders within the next two weeks.
The offer, which was proposed Sept. 5, won’t proceed if Petaquilla goes through with a $210 million private placement, Toronto, Canada-based Inmet said today in a statement. Inmet is proposing to pay C$0.48 or 0.0109 of an Inmet share for each Petaquilla share.
Inmet is developing a $6.2 billion copper and gold mine in Panama that will be the country’s largest. Buying Vancouver-based Petaquilla would give it control of the nearby Molejon gold mine, eliminating what Inmet’s Chief Executive Officer Jochen Tilk said in a Sept. 5 conference call would be “a potential source of disruption.”
Petaquilla dropped 3.2 percent to C$0.60 in Toronto, implying investors expect a higher offer.
Petaquilla said Sept. 6 it was evaluating Inmet’s proposal. Dimitri Zolotov, a spokesman for Petaquilla, couldn’t immediately be reached today for comment.