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The offer for the gold side looks almost the same as the offer for the copper side except Inmet has not announced it has locked up millions of shares like it did in the copper news release which follows:
news details
Inmet Mining Announces Offer for Petaquilla Copper Ltd.
07/06/2008
TORONTO, July 6 /CNW/ - Inmet Mining Corporation (IMN-TSX) announced that it intends to make an all-cash offer ("Offer") for all of the outstanding common shares of Petaquilla Copper Ltd. (PTC-TSX) at a price of $2.00 per share.
The Offer represents a 108 percent premium to the closing price of the Petaquilla Copper common shares on the Toronto Stock Exchange as at July 4, 2008, the last trading day immediately prior to announcement of the Offer, and a premium of 85 percent to the 20-day volume weighted average price as at the same date. Full details of the Offer will be included in the formal offer and take-over bid circular to be filed with securities regulatory authorities and mailed to Petaquilla Copper shareholders.
The Offer will be open for acceptance for at least 35 days following commencement of the Offer and will be subject to certain conditions, including receipt of all necessary regulatory clearances, the absence of any material adverse change in Petaquilla Copper and acceptance of the Offer by Petaquilla Copper shareholders owning not less than 50.1 percent of the Petaquilla Copper common shares on a fully-diluted basis. Following completion of the Offer, Inmet intends but is not required to take steps to acquire any Petaquilla Copper common shares that remain outstanding.
Inmet will formally request a Petaquilla Copper shareholder list tomorrow and intends to file and mail the take-over bid documents as soon as possible following receipt of the shareholder list.
In connection with the Offer, Inmet has entered into a lock-up agreement with certain institutional shareholders owning 15,079,000 Petaquilla Copper common shares, or 9.38 percent of the Petaquilla Copper issued and outstanding common shares, under which such shareholders have agreed to tender their common shares to the Offer.
This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the securities of Petaquilla Copper. Such an offer may only be made pursuant to an offer and take-over bid circular filed with the securities regulatory authorities in Canada.
Inmet's financial advisor is BMO Capital Markets and its legal advisors are Torys LLP and Lawson Lundell LLP.
Conference Call and Webcast
On Monday, July 7, 2008 at 8:30 a.m. Eastern Time, Inmet will hold a live conference call and webcast with a slide presentation regarding the Offer. The call will be hosted by Richard Ross, Chairman and Chief Executive Officer and Jochen Tilk, President and Chief Operating Officer.
You are cordially invited to listen to the audio webcast through either:
http://w.on24.com/r.htm?e=114147&s=1&k=8D51645C98828A18EDE63E1B2EE001E4 or www.inmetmining.com
After the broadcast, an archive of the webcast will be available on both websites.
Interested persons who are unable to connect to the webcast can listen to the conference call by dialing +1 416-644-3417 (local/international) or toll-free +1 800-733-7571 (North America only).
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 forward-looking information. 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, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.
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: Cayeli, Pyhasalmi, Troilus and Ok Tedi. We also have interests in three development properties, Las Cruces, Cerattepe and Petaquilla.
This press release is also available at www.inmetmining.com.
As discussed, Inmet has a lot of gold and silver it needs to process. They want the plant big time.
Over 8 million shares already at around $.055. Inmet's announcement looks silly already. To me, it looks like institutional investors might be tempted to sell in the $0.65 to $0.75 range. If management feels that is too low, they have to convince the institutional investors that they have the leverage needed to force Inmet much higher. If they can't convince the large guys, they have to get all us small guys on-board for a protracted fight. Not an easy task unless he can come out with a lot good news in a hurry. If there is anything good, it needs to be released now. One of the things that hasn't been discussed, is that it is possible that management has secured enough votes to fight it out and is sitting in the catbird's seat.
After reading both sides of all your excellent posts it seems to me likely that Inmet has some large shareholders in their pocket and PTQ has not responded because they are contacting all large shareholders to see what is what. As Inmet didn't announce at the conference that they had it wrapped up I think PTQ management will fight for the best deal, as with anything, people do what's in their best interest. I don't believe management would walk away from 100 of million of dollars because some jerks on the board have been complaining.
Sorry, I see Inmet is hosting conference call. Thanks
Where did you find the 8:30 conference call?
Great Post
I agree Lojiko, When you look at Inmet's need for a gold processing plant and need for infrasturcture this is an extremely low-ball offer. Inmet's worried that if we get the $210 million in financing, the SP will take off over time and Inmet will have to deal with us on our terms. Could they have owned that much of our stock to keep the price down for so long? Can't fathom it but maybe. I don't believe management will sell for anything less than $1 and will demand to keep PDI and LomPoy.
I knew in my gut something was happening, I called it last week. I would think the offer will go up substantial from .48 per share. Probably around $1 when all is said and done.
I knew in my gut something was happening, I called it last week. I would think the offer will go up substantial from .48 per share. Probably around $1 when all is said and done.
My gut feel is that something big next week on Financing or partnership with Inmet.
MJK, it would seem logical that PTQ would process gold and silver for Cobre and Inmet would process PTQ copper. Was there any anything to this effect in the Petaquilla Copper deal. It would also seem logical that access rights for the power plant, roads and buildings were negotiated in the Petaquilla Copper sales agreement but maybe they're doing it as they go?. Is a copy of the sales agreement for Petaquilla Copper available in Panama government offices or on the web?
Sorry about that. Then they have until Sept 17 to hold the meeting with the record date of July 17, I agree with you that the financing announcement will come with or before the spin-out meeting date as it makes the projected earnings for PDI more accurate. Any rumors of mergers or buy-outs? Could that be holding up the PDI spin-out?
Canada National Instrument 54-101 states that best practices are not less than 30 nor more than 60 days between the date of record and meeting date. 54-101 are guidelines and are not enforceable. British Columbia law requires the record date to be not more than 2 months from the meeting date. As the date of record on Sedar is July 3, the company has until September 3 to mail out the data and hold a meeting. Probably August 23 is that last day they could send out mailing and still have a meeting. Could still be done but not likely. Now, the way I'm reading this, PTQ is governed by Brit Col law and could go the 2 months maximum if they wanted. So if they mailed the spin-out data say Sept 15 with a meeting date for Sept 30, they could set the record date from July 30 to September 30. This is not legal advice, just me take on what the company could do.
Up 2 cents on TSX on better volume. Is this related to PDI shares still in play if you buy PTQ?
The U.S. dollar will devalue significantly within the next ten years. If Obama is reelected and the Democrats win either the Senate or the House of Reps then the devaluation will be within five years. The U.S. Federal Government has 130 trillion (That's TRILLION) in unfunded liabilities due by 2030 which is only 17 years away. It will also have 20 trillion in government bonds issued by 2014 no matter who is elected in November. As MKJ states, the interest on the U.S. national debt will eat up 65 percent of the current taxes collected by 2020 assuming interest rates stay low as they are now. The U.S. is borrowing money on 10 year bonds at 1.5 percent interest. If that rates doubles to historical levels, then interest on the debt will consume 120 percent of all U.S tax revenues by 2020. The 50 states have around 10 trillion in unfunded pension liabilites due by 2030. The only way that the U.S. can cover these liabilities is to run hugh inflation to pay off its debts in cheap (almost worthless) dollars - that's is exactly what helicopter Ben is doing and will continue to do - print money to pay debt. No one wants to believe that the U.S. will fail but it is inevitable. The question is not if but when. MKJ is giving good advice - buy all the silver you can afford and put it some where safe. I think when the U.S. finally does crash, the world will go into a depression like the 1930s. Will there be wars like back then? Probably. Really bad times are ahead, whether or not Panama will escape the chaos is debatable but certainly Panama would be better off linking its currency to gold and silver.
There was a segment analyzing Inmet's Cobre Panama project on Canada's Business News Network today. The analyst (I'm sorry, i wasn't able to remember his name or company) basically portrayed Panama as a risky place to do business and talked about the anti-mining protests as a big deal. He was very negative about Inmet's ability to finance the project and stated that it was a very risky investment given the volatility of copper prices. If a Canada business network still has negative views on Panama, it is a not a good sign. Certainly wouldn't help our SP. The analyst did say that the project was hugh and had the support of the Panama Government as it would provide as much financial benefit to Panama Economy as the Panama Canal for the next 30 years if the Cobre Panama project is successful. He also stated that Inmet had obtained over 5 billion dollars of the 6 billion needed to start operations but didn't explain why he thought Inmet would have trouble financing the project. A very strange analysis. it came across as negative but was not supported by factual data. Very strange
IMO, PDI issue has brought selling to a standstill. With no bonus probable with purchase of PTQ, shares sales have dropped dramatically. The PTQ price has held up well which is to the good. Need some good news to move the share price.
Son of Savlo - no - just injecting some humor into the discussion. I loved Savlo posts and miss them because they were so far out they made you laugh. I'll bet Savlo owns over a million shares and was just having some fun. Stock might go lower but not much IMO and future looks bright. As savlo would say: This pig eat good, go big and fat, and make so Savlo rich big time so I buy facebook for $1 million.
This pig no go. is big dragging you down to .02 you lose big time with this stinking big pig. I told but long ago but you no listen now you lose all plus more. I buy all company for $450,000 in next year.
Per the above Historical Au Production and EPS chart, there are 87,000 ounces of gold mined but not poured in FYs 2011 and 2012. If the material is for heap-leach, there must be 3.2 million tons of it stored somewhere assuming .75 grams per ton. I guess thats not much if the two heap-leach pads totaling 700,000 tons get going. That would be 4.5 cycles through the heap-leach so about a years worth of material stored up. If they can process all that material through heap-leach in one year, it would more than double gold production. Wish the company would come out with info on how the pads are doing.
In its July 3 pr, PTQ said info on PDI spin-out would be provided on record date which they estimated as sometime in mid-July. It looks like we should receive something in the mail today or soon or they will post something on Sedar. Nothing yet I can see.
It will be interesting to see if 4th quarter fin statements show revenue from PDI type operations. I assume we're building some roads and supplying aggregate by now?
Perfect timing for the presidential election in November
Muchas Gracis (Hope I spelled it right, forgive me if I didn't)
Good post. The writer makes cobre panama sound risky because of the volatility in copper prices and implies Panama is not stable (what a shot at Martinelli. I believe Inmets financial presentation uses $2.75lb price for copper as the low end of their present value analysis and C3 cash costs per ounce of $1.85. Maybe the writer thinks there's a good chance copper will fall below $2 and kill the project.
The copper spin-out? Is it in LP or Panama? Someone told me it was Panama but why include international on pages 27 and 28? I have lots of questions but no answers.
A friend of mine is touting a "rare earths" mine in South Africa that's about to come into production. He says China has a monopoly and is driving up price. Are there a lot of rare earth mines out there or is China the only place producing at this time?
Peak oil is a myth for various reasons. The U.S. has a proven 400 year supply of natural gas resulting from the new fracking technique and that will go much higher when you really start looking at what's under the Rocky Mountains. Franking also opens up marginal oil fields. When the whole world starts using fracking we'll be swimming in cheap energy. It's starting in the U.S. but slowly because big oil is doing everything it can to slow it down including funding the extreme environmentalist and Obama. Who would have thought? Natural gas will kill big oil because they can't control the production and distribution to a large extent although big oil is buying up a lot of small and middle natural gas drillers and gas pipelines as fast as it can. Obama hates fossil fuels and is slowing its development to the point he's killing his own reelection chances. If the oil price explodes it will drive the U.S. switch to natural gas for vehicles at super speed. Sooner or later, the U.S. stops importing oil and switches to natural gas. The U.S. is already the world's largest exporter of natural gas which is going to India, China, and Japan at an equivalent rate of 3 million barrels of oil a day.
You could be right about QE3 coming up but oil and gas prices are dropping which means more money in the pocket of the U.S. consumer. The economy is directly tied to oil and gasoline prices so we could see a pick-up in the economy next quarter which could cause Helicopter Ben to hold off on QE3 for another 2 quarters. Now you gotta believe that Obama is putting pressure on Ben to stimulate to improve job numbers, but so far Big Ben is holding firm. Another wild-card is Iran. If Obama believes he is losing he might ok an attack on Iran nuke sites in late Sept or early Oct to boost his campaign. Oil would skyrocket and probably gold too.
Last few days the link between oil, the u.s. stock market and gold was broken. All three were falling together but in the last few days, gold has risen to almost $1,600 while oil and the stock market have continued to fall. Gold is still a good save haven in these troubled times and that is not likely to change.
I remember MJK saying that we would ship copper ore to europe for processing. I guess we could use Inmets new slurry line for a price but that won't be online until 2016. Is there any initial processing done to the copper ore prior to slurrying it out? Seems like slurrying and shipping 100s of million of tons would be expensive (actual copper is only 3 percent of the aggregate, right? This should be easy for all you copper processing experts out there. MJK has said a couple of times that there's a lot of copper on our property but this was the first hint I've heard from the company itself that there's copper worth mentioning. Maybe the new 43-101s for the other areas being drilled will show a lot of copper. It would have to be a lot of copper to move the SP.
Are they talking about spinning off copper at LP or mojolon?
Wow Salvo, I think I know what happened, the SP got low enough so that you bought a boatload at ,30 and are now on our side. Am I right?
Thank you Anski
If the limit is 171,000 shares a day, did PTQ exceed the limit when it bought 700,000 shares in two days? Maybe it's not important or there is some rule around the limit. Also, is the dock strike still going on? Is that why they haven't got the new ball mill on site?
great post, thank you
Something was up, but not what I thought. I smell lawsuit if some big investor wants out. Oh well, company is still operating and pouring gold. If I remember correctly, this board is predicting that upcoming 43-101 will greatly increase reserves in Panama so any adjustments looking backward won't mean much. As for Spain, we never really had a handle on how much metal could be recovered - Correct me if I'm wrong, but I don't think anything in Spain was listed as proven or probable. If SP drops big, I will buy as much as I can as new 43-101s will meet approval and show large increases in Panama reserves.
You could be right - I really don't have any hard facts to prove my hunch but why would PTQ take all of the website data down prior to having the replacement info to put in? Maybe that's what they are doing and they don't think there's anything unusual about it.