Listed Mining Companies
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TORONTO (miningweekly.com) – TSX-listed Inmet Mining has received approval from the National Executive Council of Papua New Guinea, for the company's plan to exchange its 18% holding in Ok Tedi Mining Limited (OTML) for a 5% net smelter return on revenues from the Ok Tedi mine.
Inmet first announced the planned transaction in June, and will now sign definitive documentation with OTML.
The transaction is expected to close within “several months”, the firm said on Thursday.
The royalty will apply to proceeds from the sale of all mineral products from the Ok Tedi copper mine as operated under the current mine plan, minus treatment charges and penalties, insurance, freight and sampling/assaying and a 2% royalty paid by OTML.
The term of the royalty is expected to span from closing of the transaction until December 31, 2013, Inmet said.
However, the end date will be adjusted to reflect any acceleration, delay, sterilisation or change in cutoff grade ore that is contained in the approved pit shell and budget.
When the exchange closes, Inmet will receive a payment equal to 18% of OTML's working capital at the time.
Besides its holding in Ok Tedi, Inmet also has base metals and gold mines in Spain, Turkey, Finland and Canada and a copper project in Panama.
Shares in the company declined 2,36% on Thursday, to C$64,60 apiece by 13:57 in Toronto.
