Petaquilla Minerals Ltd. (fka PTQMF)

[Lojiko]

PTQMF mentioned in Seeking Alpha's The Gold Report in this article.

TGR: One low-cost gold producer you have followed closely for some time is Petaquilla Minerals Ltd. (OTCQB:PTQMF) [PTQ:TSX]. It has a big decision coming up, right?

CL: Petaquilla has the producing Molejon mine in Panama and the Lomero-Poyatos polymetallic mine in Spain, which is at the bulk-sampling stage. Previously, the company was talking about shipping the bulk sampling from Spain to Panama to process. That would be expensive because it's not very efficient: across the Atlantic Ocean and from one end of the Panama Canal to the other.

The company is mining gold at $500-600/oz. At the current gold price, Petaquilla should be able to generate some cash flow and improve its balance sheet.

TGR: Molejon is adjacent to First Quantum Minerals Ltd.'s (OTCPK:FQVLF) [FM:TSX] $6.2-billion Cobre Panama copper project. How does this affect Petaquilla?

CL: Petaquilla has a big contract-up to $100 million [$100M]-with First Quantum to provide aggregate mining.

TGR: Do you think there's a possibility of Petaquilla being bought out by First Quantum?

CL: I feel there's a real chance this could happen. After all, Inmet, which got bought out by First Quantum, tried to buy Petaquilla twice.