9th May 2014 11:44
LONDON (Alliance News) - Base metals miner First Quantum Minerals Ltd Friday said it has struck a deal with Petaquilla Minerals Ltd to provide up to USD60 million, in return for assets and property rights.
The agreement was set up to completely separate First Quantum's subsidiary Minera Panama's major Cobre Panama copper mine from Petaquilla's Molejon gold mine in Panama.
Under the terms, Petaquilla will transfer 99,735 hectares of exploration concession applications in the region and waive any rights to the Botija Abajo, Brazo, Balboa, Colina, Botija, and Valle Grande copper deposits, along with certain other mineral deposits.
First Quantum said the deal also terminates a previous rock screening deal between the two companies and means that Petaquilla has transfered ownership of the main access road to Cobre Panama to the First Quantum.
In return, Minera Panama paid Petaquilla USD3.3 million for signing the agreement, which will be followed up by a payment of up to USD46.7 million on the execution of certain key events before July 6.
An additional USD5 million is payable after one year, conditional on certain approvals being granted, and a final USD5 million is payable 30 days after the first shipment of ore from the Cobre Panama Project is completed.
First Quantum Minerals Ltd shares were untraded Friday; they were last quoted Thursday at 1,129.00 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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