27th Nov 2013 15:34
LONDON (Alliance News) - First Quantum Minerals Ltd Wednesday said its subsidiary FQM Akubra has been accused of default by a limited number of noteholders, but it is disputing the allegations.
The international mining company, with copper and nickel assets, said the noteholder group has alleged that when Inmet Mining Corp amalgamated with Akubra, Inmet violated the terms of the indentures of Inmet's 8.75% Senior Notes due 2020 and Inmet's 7.5% Senior Notes due 2021.
First Quantum said that it disputes the allegations but if the transaction resulted in a breach of the indentures, the only remedy available to the noteholder group under the indentures would be acceleration of the debt and repayment at par, which would reflect a significant discount to current trading prices.
"We remain very confident in the strength of our legal position and we intent to take immediate legal action to enforce it. We will also remain open to reaching an amicable resolution," Chief Executive of First Quantum Philip Pascall said in a statement.
First Quantum Minerals shares were down 3.6% to 1,007 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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