Inmet Moves for Panama Gold

Inmet Mining plans to make an offer to acquire all of the outstanding common shares of Petaquilla Minerals, a Panamanian gold mine operator, for CAD112m ($110m), it says. The Canadian miner active in LatAm is offering CAD0.48 cash, or 0.0109 Inmet shares, per Petaquilla share. The proposal would contemplate a spinout of Petaquilla’s assets in Spain to Petaquilla holders, allowing them to keep the potential upside of Petaquilla’s only asset outside Panama. Assuming the spinout, that offer represents a 37% premium to the Petaquilla closing price on Wednesday and a 30% premium to the 20-day average price. The offer is open for 35 days and requires acceptance from 50.1% of Petaquilla holders. Dundee is advising Inmet. Inmet is developing the $6.2bn Cobre Panama copper-gold project, which is adjacent to Petaquilla’s Molejon gold mine.