Message Ven 8 Mar 2013 19:30

First Quantum Minerals confident of acquiring Inmet Mining

First Quantum Minerals confident of acquiring Inmet Mining news
07 March 2013

Canadian miner First Quantum Minerals yesterday said that its sweetened C$5.1 billion unsolicited bid for rival Inmet Mining Corp would succeed.

In October 2012 Vancouver-based First Quantum had made a cash-and-stock bid of C$62.50 per share, before sweetening the bid in November to C$70 a share.

Both the unsolicited offers were rejected by the board of Inmet, which also adopted a shareholders right plan or ''poison pill'' in order to make any takeover very expensive.

New York-based Leucadia National Corp, which owns a 16-per cent stake in Inmet has supported the latest offer. Lat week Quantum extended its offer to 11 March.


Singapore's sovereign wealth fund Temasek Holdings with 11-per cent stake in Inmet, has remained silent, an indication that it may not go with First Quantum's proposal, which analysts think could be raised further.

Inmet, based in Toronto, is developing the second-largest undeveloped copper deposit called Cobre Panama copper mine, and once developed after investing $6.2 billion, would produce around 266,000 tons a year.

Apart from the Cobre mine in Panama, Inmet also has mines in Finland, Spain and Turkey.

First Quantum said that a merger would create one of the world's leading and fastest growing copper producers, with the potential to produce more than 1.3 million tonnes per annum of copper by 2018.

The combined company would comprise high quality assets across four continents, including seven low-cost mines and three world class development projects in Sentinel, Haquira and Cobre Panama.

First Quantum, which is also developing its Sentinel mine that is similar in scale to Cobre Panama, had said that it has undertaken a comprehensive review of the Cobre Panama project on the basis of publicly available information and believes that it can achieve substantial savings in developing the mine with its unique expertise and proven track record in project development.

First Quantum holds a global portfolio of copper and nickel assets located in Africa, Australia, South America and Europe.

For the 12 months ended 30 September 2012, First Quantum generated revenue $2.7 billion and produced 290 kt of copper, 32 kt of nickel and 181 koz of gold.

The Toronto, London and Lusaka Stock Exchanges-listed company has a market cap of around $9 billion.
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