Eyeing expansion in Panama, Canada’s Inmet Mining Corp. (TSX: T.IMN, Stock Forum) said it plans to make an offer to acquire Petaquilla Minerals Ltd. (TSX: T.PTQ, Stock Forum) for about $112 million.
Inmet said it is preparing to offer 48 cents in cash or .0109 Inmet shares for each Petaquilla common share, an amount that represents a 37% premium to the closing price of Petaquilla common shares on Wednesday, and a 30% premium to the 20-day volume weighted average price, Inmet said.
Inmet is eyeing Petaquilla’s Molejon gold mine, which is adjacent to Inmet’s US$6.2 billion Cobre Panama copper-gold porphyry project, Panama’s largest ever mine development. In a press release, Inmet outlined several reasons why its offer should be attractive to Petaquilla shareholders.
Up 1.63% on Wednesday to $44.17, Inmet has a market cap of $3.1 billion, based on 69.4 million shares outstanding. The 52-week range is $70.34 and $37.01. Petaquilla shares closed unchanged at 35 cents on Wednesday, leaving the junior with a market cap of $77.6 million, based on 221.8 million shares outstanding. The 52-week range is 94 cents and 30 cents.