You are correct there are now just three options.
However, Inmet is on a very short leash with regard to time. It is not just the tailings ponds, but the entire project. Electrical grid, power plant land, port land, slurry system, road systems, infrastructure requirements, all need acquiescence from Petaquilla. Inmet is already five years behind schedule. There is still more bad news for them in the pipeline.
Petquilla's fundamentals are ready to jump to the next plateau within thirty days. Rate of production, PP bond issue, PDI, New N.I. 43-101's (3). The clock on Inmet's loans is running, as is the time line for closure of their other properties; plus they have specific obligations for progress. They need a bunch of new permits and an EIS revision. Petaquilla is not their only problem.
The government with the newly formed Dept. of Recursos Minerales has just given them a TKO, and ordered them to either negotiate a "friendly" agreement or go to arbitration under Ley Petaquilla No.9. If you are at all familiar with that process you would immediately recognize that they are committing suicide by going there. Petaquilla is not going to sell the company to them. They are not going to be successful with this HT. If they try another HT the Panamanian Government will clobber them. So in actuality they have only two choices, both of which were spelled out very precisely in the ruling, (1) "Friendly" agreement, (2) Arbitration.
IMO, therefore, while technically they have the three options, there is only one viable one that can save their project. They must negotiate a "friendly" agreement for those rights and assets that they require. Petaquilla will also demand some sort of inviolable guarantees of participation in benefits made available by Cobre Panama. (i.e. electricity, free access to exploration data, no interference in mining gold deposits, use of roads, sale of aggregate, transparent opportunity to bid on all contracts.) There are some other things also, but you get the idea.
Behind the scenes and the curtain, they have been fighting over these issues for nearly three years in court. Now definitively, Inmet has lost and cannot appeal. Between the lines the government is warning them that they must come to terms. If they do not take heed, out of ignorance or arrogance, it makes no difference. We go back to Mandarin and Inmet goes back to Canada. IMO, they cannot be that stupid and this matter will be settled before Christmas. IMO they have little choice left. Remember Martinelli is on record stating that he "personally" has no financial interest in Petaquilla Minerals, Ltd.. If you speak Panamanian that tells you all that you need to know! PETAQUILLA ES PANAMA!
AI
