Minera Panama, S.A. and Petaquilla Minerals Ltd. Sign $60 Million Agreement
May 08 2014 - 4:00PM
Marketwired
Minera Panama, S.A. and Petaquilla Minerals Ltd. Sign $60 Million
Agreement
(In United States dollars, except where noted otherwise)
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 8, 2014) -
Minera Panama, S.A. ("MPSA") a subsidiary of First Quantum Minerals
Ltd. ("First Quantum") (TSX:FM)(LSE:FQM) and Petaquilla Minerals
Ltd. ("PTQ") (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) 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 July 6, 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:
- PTQ to transfer 99,735 hectares of exploration concession
applications in the region to MPSA;
- PTQ to transfer to MPSA 551.5 hectares at the north end of its
Molejon mining concession area to support current planning of the
Cobre Panama mine development;
- Termination of the Aggregates and Screened Rock Purchase
Subcontract dated May 23, 2013, without liability to either party;
effective June 30, 2014;
- PTQ to transfer to MPSA sole ownership of the Llano Grande Road
which is the main access road to the Cobre Panama project area, and
ownership of other access roads as well as rights of way along
MPSA´s electrical distribution corridor;
- PTQ to transfer to MPSA 833.3 hectares of land (both title and
possessory rights) which comprises all PTQ land holdings within a
30 kilometre radius of the Cobre Panama project (excluding the
Molejon concession);
- PTQ to waive any rights to the Botija Abajo, Brazo, Balboa,
Colina, Botija, and Valle Grande copper deposits or to any mineral
deposits outside PTQ´s residual portion of the Molejon mining
concession area; and
- PTQ to provide future collaboration, assistance and support in
connection with MPSA´s current surface rights applications, Law 9
amendments and any possible future expansions of the Cobre Panama
project.
Execution of the Second Amendment ensures complete development
and operational flexibility for the Cobre Panama project by
providing MPSA with 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 its operations of the Molejon Gold production
facility and Panama Desarrollo de Infraestructuras, S.A., PTQ's
infrastructure division, will continue to operate its
infrastructure within the Molejon Gold Project concession.
On behalf of the
Board of Directors of
PETAQUILLA
MINERALS LTD.
Richard Fifer,
Executive Chairman
NO STOCK EXCHANGE HAS APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN.
Petaquilla Minerals Ltd.Mr. Nicolas RicciardiVP, Investor
RelationsToll free: 1-877-694-0021(604)
694-0063www.petaquilla.com