Petaquilla Minerals evaluating higher Inmet offer

Thu Oct 25, 2012 12:11pm EDT
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Oct 25 (Reuters) - Canadian gold miner Petaquilla Minerals Ltd said on Thursday it is evaluating a higher buyout offer from Inmet Mining Corp even as it pursues talks with others.

The new cash-and-stock offer, which works to about 60 Canadian cents per share based on Inmet's Wednesday close, values Petaquilla at about C$130 million ($130.8 million), up from the C$109 million offer in September.

Shares of Petaquilla, which has a market cap of C$126.50 million, rose nearly 9 percent to 62 Canadian cents in midday trade on the Toronto Stock Exchange.

Inmet on Wednesday raised the stock portion of its offer to 0.0118 of its share for each Petaquilla share held from 0.0109, retaining the cash portion at C$0.001.

Vancouver-based Petaquilla operates the Molejon gold project in Panama. Inmet has an 80 percent interest in Cobre Panama, one of the world's largest copper projects. Cobre Panama is now under construction.

Inmet, which has a market value of C$3.53 billion, has said a deal with Petaquilla would not impact development of its copper project in Panama.

Shares of Petaquilla have risen about 63 percent since Inmet made the offer in September.