RE: INMET Q & AFor the answers, see PTC website:
"Upon Teck making a final commitment, Inmet is required to deliver a final commitment to participate in the development of the project or it will be required to dispose of its interest in Minera Petaquilla. Inmet is then required to either offer to sell its interest in the concession or accept an 8% net profit interest, as defined, in the project. The offer to sell its interest shall be made first to Petaquilla Copper and then to Teck at a price to be determined by Inmet. In the event that neither Petaquilla Copper nor Teck chooses to acquire Inmet's interest, Inmet shall be entitled to seek an independent purchaser of its interest on terms no more favorable than those offered to Petaquilla Copper and Teck.
Either Petaquilla Copper or Inmet (the Proposer) may at any time give notice to the other parties of its intention to proceed with development of the concession in accordance with the most recently delivered Teck feasibility study. Upon receipt of such notice, Teck has 50 days in which to make a final commitment to develop the project. The other party, Petaquilla Copper or Inmet (the Recipient), has 60 days from the receipt of such notice to commit to develop the project.
If the Recipient has not agreed to develop the project, the Proposer may, within 70 days of the proposal, elect to exercise the "Shotgun Offer," as defined, and either sell its interest or acquire the Recipient's interest in Minera Petaquilla, for cash, based on the value of Minera Petaquilla as determined in accordance with the provisions of the agreement. The Recipient has 15 days from receipt of the Shotgun Offer to agree either to sell its interest or to acquire the Proposer's interest as applicable, and in the event that the Recipient does not take action within the 15-day period, it will thereafter be deemed to have agreed to sell its interest in Minera Petaquilla.
If Minnova sells its interest, pursuant to the Shotgun Offer, Petaquilla Copper shall pay Minnova 48% of the value of Minera Petaquilla.
If Petaquilla Copper sells its interest, pursuant to the Shotgun Offer, it shall receive 29% of the value of Minera Petaquilla on condition that, in the event that Teck's interests in the concession is terminated, Petaquilla Copper shall receive an additional 23% of the value of Minera Petaquilla.
If Teck's interest in the concession is not terminated and Petaquilla Copper sells its interest, pursuant to the Shotgun Offer, Petaquilla Copper shall not be entitled to receive any further amount, in excess of the 29% of the value received on account of the sale of its interest in Minera Petaquilla.
Upon exercise of the Shotgun Offer, Teck has 130 days in which to deliver a final commitment for development of the concession or its interest shall be terminated.
Teck's interest in the concession shall terminate on the earlier of:
Teck electing to terminate its interest provided it has delivered its final feasibility study, or
Teck's failure to deliver a final commitment requesting development of the concession and to deliver an updated feasibility study.
In the event that Teck's interest is terminated, Teck shall retain a net profit royalty interest in the project at a rate to be determined."
Also from the latest PTC news release:
"Over the past year, Petaquilla has been in discussions with financial institutions throughout the world and with integrated metal producers in Asia with respect to providing financing for Petaquilla's share of development costs, and is optimistic that it can provide the financing for its proportionate share of such costs, whether it be 26 per cent or 52 per cent."
The next six weeks may be very interesting.