Petaquilla Minerals must cancel bond offering to be acquired by Inmet

By Angela McDaniels

Tacoma, Wash., Sept. 5 - Inmet Mining Corp. wants to acquire Petaquilla Minerals Ltd., and the offer is conditioned on Petaquilla not completing its planned $210 million offering of notes, according to an Inmet news release.

As previously reported, Petaquilla plans to price five-year senior secured notes through bookrunner Global Hunter Securities. Plans for the offering were first announced on July 17.

Inmet plans to offer C$0.48 in cash or 0.0109 Inmet shares for each Petaquilla common share. The price is a 37% premium to Wednesday's closing share price and implies a total equity purchase price of about C$112 million.

In addition to the bond offering being canceled, Inmet's offer is conditioned on the acceptance by holders of at least 50.1% of Petaquilla's outstanding shares and no further debt and/or equity financings.

Petaquilla is a gold mining company based in Vancouver, B.C. Inmet is a mining company based in Toronto that produces copper and zinc.

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