Minera Panama S.A. and Petaquilla Minerals Limited Sign $60 Million Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 8, 2014) - (In United States dollars, except where noted otherwise)
Minera Panama ("MPSA") a subsidiary of First Quantum Minerals Ltd. ("First Quantum") (TSX:FM)(LSE:FQM) and Petaquilla Minerals Limited (TSX:PTQ) ("PTQ") today announced the execution of an amendment to the Commercial Agreement Term Sheet dated May 23, 2013 (" Second Amendment" ). MPSA is to pay PTQ up to $60 million for a transfer of a range of assets and property rights. The transaction ensures there will be a complete separation of the current operations of PTQ's Molejon Gold mine and the Cobre Panama copper project currently being developed by First Quantum.
$3.3 million is being paid on execution of the Second Amendment with an additional $46.7 million conditional on PTQ meeting specific deliverables before 6th July 2014. An additional $5 million is payable after one year conditional on certain approvals being granted with a final $5 million payable 30 days after the first ore shipment from the Cobre Panama project, provided PTQ has fulfilled all of the obligations and achieved all milestones as set out in the Second Amendment.
Key aspects of the Second Amendment include:
Execution of the Second Amendment ensures complete development and operational flexibility for the Cobre Panama project, provides MPSA ownership of all concession application areas surrounding the Molejon mining concession, and control of surface and access rights outside of the defined Molejon Gold mine area.
PTQ will continue the operations of the Molejon Gold production facility and Petaquilla Development Infrastructure will continue to operate its infrastructure within the Molejon Gold Project concession.
For further information visit our website at http://www.first-quantum.com.
On Behalf of the Board of Directors of First Quantum Minerals Ltd.
G. Clive Newall, President
12g3-2b-82-4461
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Minera Panama S.A. and Petaquilla Minerals Limited Sign $60 Million Agreement