Inmet offer for Petaquilla set to expire after talks fail to reach a deal

TORONTO – Inmet Mining Corp. (TSX:IMN) said its takeover offer for Petaquilla Minerals Ltd. (TSX:PTQ) will expire at 11:59 p.m. PT on Monday after talks between the companies over the weekend failed to reach a deal.

Inmet said “limited discussions” took place between the companies, but were unsuccessful and were “terminated.”

Based on Inmet’s recent share price, the offer is valued at about $147 million.

Inmet has offered Petaquilla shareholders 0.0118 of an Inmet share plus 0.1 of a cent in cash. Alternatively, shareholders may also choose to receive up to 60 cents in a combination of cash and shares based on a Inmet share price of $50.82.

Inmet shares were down 41 cents at $55.76, while Petaquilla shares were down two cents at 62 cents on the Toronto Stock Exchange in early trading Monday.

Inmet’s offer is seen as a move to consolidate the area around its Cobre Panama project.

Petaquilla’s Molejon project neighbours Inmet’s US$6.2-billion Cobre Panama copper-gold porphyry project, Panama’s largest-ever mine development.