Inmet to Sell $1 Billion Bonds to Fund Panama Copper Mine |
| Bloomberg - May 7, 2012 |
Inmet Mining Corp. (IMN), developing the $6.2 billion Cobre Panama copper mine, said it will sell $1 billion of bonds to help fund the operation instead of selling a stake in the project.
The senior unsecured notes maturing in 2020 will be offered in the U.S., the Toronto-based company said in a statement dated yesterday. Inmet owns 80 percent of the mine and the balance is held by Korea Panama Mining Corp., a venture between LS-Nikko Copper Inc. and Korea Resources Corp.
Chief Executive Officer Jochen Tilk said in March 2011 the company would reduce its equity stake in the project as it sought financing alternatives. Since then, the risk of building the mine has decreased and Inmet’s capability to fund it has increased significantly, the company said today.
In addition to issuing bonds, Korea Panama has committed $1.4 billion and the balance will be provided by Inmet, it said today. The mine will produce 266,000 tons of copper and 87,000 ounces of gold annually, it said. It will run for 31 years based on current reserves and first ore will be processed in the final quarter of 2015 with the first shipment in early 2016.
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- Posted: 2012-05-07 10:48:54
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