After months of a press-based war that drag them to court, Canadian miners Petaquilla Minerals Ltd. (TSX:PTQ) and Inmet Mining Corp. (TSX:IMN) said they have reached a preliminary $150 million commercial agreement for their projects in Panama.
Under the binding term sheet, which requires a definitive agreement, the two companies have resolved a number of outstanding issues, especially over land rights near the $6.2 billion Cobre Panama copper project, run by Inmet’s subsidiary Minera Panama.
Their deal comes 48 hours ahead of the deadline for Vancouver-based First Quantum (TSX:FM) $5.1 billion hostile takeover bid over Inmet.
Among other items, Minera Panama has agreed to buy from Petaquilla between $75 million and $100 million of aggregates — usually referring to sand, gravel or loose rock — for use in the Cobre project.
Inmet will also lease certain lands from Petaquilla as sites for temporary and permanent worker camps at the project site, at a rate of $1.3 million per year.
Toronto-based Inmet has also agreed to drop certain claims against Vancouver-based Petaquilla.