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Friday, August 01 2014 @ 08:23 PM EDT

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Petaquilla Stock Value Free Fall Continues

Gold & Mining

By DON WINNER for Panama-Guide.com - It appears investors have lost all confidence in the Petaquilla gold mining operation in Panama. After having hit a high of $3.36 on 2 January 2008, in the past eight months the stock (ptqmf.ob) has lost more than 73% of its value, closing at .91 cents yesterday. This fall off is probably a combination of a shaking of confidence in the Petaquilla management, with investors now wondering if the mine will ever produce its first ounce of gold. Another possibility is that this slumping of the stock price might be some kind of a poison pill action, based on the fact that Toronto-based Inmet Mining Corp launched a takeover bid on July 7 for Vancouver-based Petaquilla Copper for about C$2 ($2) per share, or an estimated C$321 million in total. The offer from Inmet is valid until 3 September, so if the deal goes through then there might (emphasis on might) be a significant bounce in this stock shortly thereafter. If don't mind a little risk you might want to consider some bottom fishing on ptqmf. Long term investors and those who are significantly risk averse should (of course) stay away from this stock until uncertainties over ownership and management are straightened out. Petaquilla has been saying that the offer from Inmet is "inadequete" but in fact they will probably take it, lacking a better offer. If that happens then, presto-change-o, the stock will pop back up to about $2.00 Canadian almost overnight, or about $1.90 per share. Gold is still high at $812 per ounce - the Petaquilla property became profitable on paper when gold went over $300 per ounce so that's still there. Costs to put the mine into production have about doubled, mostly thanks to higher fuel and transportation costs. But the one thing that has not changed is the amount of gold and copper under the ground. Sooner or later, and it might be 20 years from now, but this mine is going to be opened under someone's management. The simple fact is that the mineral resources in the ground are too valuable to pass up.

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

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Petaquilla needs more time for response to hostile Inmet offer

Gold & MiningBy: Liezel Hill for Mining Weekly.com - TSX-listed Petaquilla Copper (PTC) “requires further time” to consider an unsolicited offer from Inmet Mining, the company said on Tuesday, and advised shareholders not to take any action until it had properly considered the offer. The company was also pursuing other strategic alternatives and possible business combinations, which it hoped might present better value for shareholders than Inmet's C$2,00 a share offer, which closes on September 3, PTC said. Inmet expects that a successful bid for PTC would enable it to speed up the development of the company' large Petaquilla copper project in Panama. Inmet, which owns 48% of the project, said in April that the project would likely face delays, after PTC filed a request for arbitration with base-metals miner Teck Cominco, claiming that the larger firm had failed to meet certain conditions to take a stake in the project and that Teck's interest in the project had expired, leaving Inmet and PTC as the only two stakeholders. Inmet has indicated that it would back Teck Cominco in the dispute, and Teck has also expressed its support for Inmet's plans to buy PTC. However, PTC said on Tuesday that Inmet's offer valued the company based on its 26% holding in the Petaquilla project, and did not take into the account that it could win in arbitration, and would therefore own 52% of the project. The offer was also based on “outdated and incomplete data”, PTC said.
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Cabo announces additional drilling contract in Panama

Gold & MiningTrading Markets.com - Jul 24, 2008 -- Cabo Drilling Corp, a drilling services company, announced on Wednesday (23 July) that the company's Panama division has been awarded an additional 14,000 metres of drilling at Minera Petaquilla S.A.'s copper project in the district of Donoso, in Colon Province, Republic of Panama. The original contract, which was announced in March 2008, was for a minimum of 6,000 metres of drilling. The company currently has four drills on its project with Minera Petaquilla S.A., with a fifth drill being mobilised from Canada. Cabo said, that in addition to the further 14,000 metres of drilling, the company will supply all of the labour required for site preparation and helicopter support. Financial details were not available.
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Petaquilla denounces Inmet offer as 'inadequate'

Gold & MiningMetal Bullerin.com - Petaquilla Copper has denounced Inmet Mining Corp’s $315.6 million takeover bid as “inadequate” in a preliminary response to last week’s offer. “Until the offer is formally commenced and has been reviewed, the board of directors is unable to comment. However, the board notes that even Inmet accepts that the bid price is inadequate,” the company said. Petaquilla also noted that Inmet coo Jochen Tilk acknowledged the offer as “opportunistic”. Toronto-based Inmet Mining Corp launched a takeover bid on July 7 for Vancouver-based Petaquilla Copper for about C$2 ($2) per share, or an estimated C$321 million in total. The offer, which represents a 108% premium to the closing price of Petaquilla’s common shares on the Toronto Stock Exchange on July 4, would increase Inmet’s ownership interest in the Petaquilla copper project to 74% from 48%. The offer will be open for acceptance for at least 35 days. (more)
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(AMM) Inmet offers to buy Petaquilla Copper for $315.6M

Gold & MiningMetal Bulletin.com (7 July 2008) Inmet Mining Corp., Toronto, has offered to buy Vancouver, British Columbia-based Petaquilla Copper Ltd. for about Canadian $2 a share, or an estimated C$321 million ($315.6 million). The offer, which represents a 108-percent premium to the closing price of Petaquilla's common shares on the Toronto Stock Exchange July 4, would increase Inmet's ownership interest in the Petaquilla copper project to 74 percent from 48 percent. The offer will be open for acceptance for at least 35 days. The Petaquilla project in Panama, which has been valued at up to C$3.5 billion, is expected to begin production in 2011, averaging 223,000 tonnes of copper, 2,680 tonnes of molybdenum and 87,000 ounces of gold annually. (more)
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Metso to supply grinding equipment to Minera Petaquilla in Panama

Gold & Mining(Press Release) Metso Minerals will supply grinding equipment to Minera Petaquilla,S.A. in Panama for its Petaquilla copper mine, located approximately100 kilometers west of the Panama Canal. The delivery will be completed by the middle of 2011. The value of the order is approximately EUR 48 million. The order is included in Metso's second-quarter order backlog.The order comprises two SAG mills of 38 ft in diameter by 24.8 ft in length and four ball mills of 24 ft in diameter and 40.5 ft in length. The order also includes auxiliary equipment and spare parts. Minera Petaquilla, S.A. is a joint venture company developing its deposit in the Republic of Panama. The company is owned by Inmet Mining Corporation, Petaquilla Copper Ltd. and Teck Cominco Ltd.Metso is a global engineering and technology corporation with 2007net sales of over EUR 6 billion.
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Inmet Mining faces 'wall of bureaucracy'

Gold & Mining By Peter Koven, Financial Post - The bad news continued for Inmet Mining Corp. yesterday after Spain's water authority suspended a permit needed for the Las Cruces mine, potentially delaying production and raising more questions about the company's ability to grow. "If [Inmet] doesn't have Las Cruces, there is no growth. In fact, it's the exact opposite -- negative growth," one analyst said. The ruling was yet another blow for a miner that has hit roadblocks at its three key development projects in less than two months. In March, the government of Turkey slapped an injunction on Inmet's Cerattepe project following complaints from anti-mining groups. That forced the company to push back the start date of the mine past 2009. Then last month, Inmet's two joint venture partners on the Petaquilla project in Panama started fighting each other, as junior company Petaquilla Copper Ltd. launched a legal action against Teck Cominco Ltd., claiming ownership of Teck's stake. (more)
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Inmet shares take another hit as woes mount at mine projects

Gold & MiningBy Andy Hoffman, Mining Reporter Report on Business.com - For Inmet Mining Corp., this is turning into one ugly week. On Tuesday, the company delivered a disappointing first-quarter financial report and said that a court ruling will force it to temporarily shut a copper project in Turkey, delaying the mine's startup date past 2009. And yesterday, Inmet's growth plans suffered another double body blow as Spain's water authority raised concerns about the Las Cruces mine, while, at the same time, a three-way partnership to build a massive copper project in Panama erupted into a bitter legal dispute. "We are a little perplexed," Inmet chairman and chief executive officer Richard Ross said on a conference call, referring to junior partner Petaquilla Copper Ltd.'s claim that Teck Cominco Ltd.'s interest in the Panama project has been terminated. (more)
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Petaquilla and Teck disagree over Panama deal

Gold & Mining The Canadian Press VANCOUVER — Petaquilla Copper Ltd. said Tuesday that Teck Cominco Ltd. has failed to satisfy the conditions of its deal for a stake in the Petaquilla copper property in Panama, a claim denied by the company. Petaquilla said it believes Teck Cominco failed to satisfy the conditions for making a final commitment to the project. “The sole document supporting Teck Cominco's final commitment is a draft interim FEED study delivered on January 31, 2008,” the company said. Teck Cominco spokesman Doug Horswill said he believed Teck Cominco had done nothing wrong. “We don't believe that the allegations by Petaquilla Copper Ltd. have any merit and that we have acted appropriately and in accordance with the agreements,” Mr. Horswill said. (more)
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Responsible Mining Regional Conference

Gold & MiningBusiness News Americas - Global mining and resource extraction projects are facing a whole new set of social challenges. Divergent viewpoints on the benefits of development and the impact of projects on communities and the local environment are part of the complex operating environment. Weak governments, the lack of local capacity, the spread of misinformation, and the absence of an internal skill-set to deal with them are factors that must be addressed. Effective engagement between companies, government, communities and other interest in order to align the project with local development priorities will often make the difference between project success and failure.
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Petaquilla Stock Getting Hammered

Gold & Mining

By DON WINNER for Panama-Guide.com - I've been watching the Petaquilla mining company closely for years now. They are trying to open up gold and copper mines in Panama, and recently their stock has been taking a (relative) beating. This has been a trader's stock for quite some time now because of the volatility and low volume. So, take a look at the American Bulls page for PTQMF - they have issued a "Buy If" recommendation for this stock if the buying pattern continues. Now, either you are a stock trader or you're an investor. Traders buy and sell every day. Investors can buy and forget about it. I bought PTQMF at .80 cents a share and I'm not a trader so I'm not worried about fluctuations. But if you want to trade this stock, check out the American Bulls site for indicators. And finally, if you're taking investment advice from me you need your head examined.

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

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Inmet, Teck rework Petaquilla deal

Gold & MiningBy Andy Hoffman for Report on Business.com - Showing its hand as eager to proceed with the massive but increasingly expensive $3.5-billion (U.S.) Petaquilla copper and gold project in Panama, Inmet Mining Corp. will take on more upfront financing for the potential mine in exchange for the right to operate the project. In a deal that some analysts say could delay the mine's startup until 2015, Inmet agreed to take on all the funding for the project up to $50-million until September, 2009. At that time, Teck Cominco Ltd., which had been bankrolling the operation, will decide whether it will take a 26-per-cent interest in Petaquilla, which has been called one of the largest undeveloped copper projects in the world. (more)
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Cabo to Drill Up to 6,000 Meters for Minera Petaquilla S.A.

Gold & MiningNORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2008) - Cabo Drilling Corp.'s Panama division has entered into a contract with Minera Petaquilla, S.A. to drill a minimum of 6,000 meters on their copper project in the District of Donoso in Colon Province in the Republic of Panama. Minera Petaquilla, S.A. is a Panamanian company that holds the Petaquilla copper concession. Petaquilla Copper Ltd. currently holds a 52% equity interest in Minera Petaquilla, S.A. and Inmet Mining Corps holds the remaining 48% equity interest. Teck Cominco has an option to earn 50% of Petaquilla Copper's interest in Minera Petaquilla, providing Teck Cominco funds all of Petaquilla's share of the cost of bringing the project to production. (more)
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Petaquilla working on new mine plan for Panama project

Gold & MiningBy Liezel Hill for Miningweekly.co.za - Vancouver-based Petaquilla Copper (PTC) is developing a new mine plan for its jointly-owned Petaquilla copper project, in Panama, after initial results from a front-end engineering and design (Feed) study into the project cast doubt on whether construction would begin by the January 1, 2009, deadline agreed to with the country's government. PTC holds 52% of Minera Petaquilla SA, which owns the project, and fellow Canadian Inmet Mining owns the balance. A third Canada-based miner, Teck Cominco, has the right to buy half of PTC's interest by committing, before March 31, to participate in work plans and budgets leading to commercial production, and by committing to fund 52% of the development costs for the project. (more)
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Petaquilla Copper optimistic study will show copper project in Panama as viable

Gold & MiningLONDON (Thomson Financial) - Petaquilla Copper Ltd said it remains optimistic that the final front end engineering and design study (FEED) study will show that the Petaquilla copper project in Panama remains viable, and said it sees an opportunity to provide power and port facilities to the project, which would substantially reduce capital costs. The company had said on Feb 8 that a report estimated the capital cost to develop the project at 3.5 bln usd. The company said Petaquilla Infrastructure Ltd, a company created for power, port and related infrastructure development for the Molejon gold mine of Petaquilla Minerals Ltd, will also be able to make these facilities available for the Petaquilla project. The company said Petaquilla Infrastructure is in advanced talks with a global power producer for the construction of a 360 MW thermal power plant on the Caribbean coast 16 kilometres north of the project. It added that the proposed power plant will have a larger capacity than that required for the Molejon gold mine and the Petaquilla copper project. The company said the power plant will be run as a separate cash flow business by Petaquilla Infrastructure, which will sell to a greater market over and above providing "over the fence" power to the Petaquilla project. TFN.newsdesk@thomson.com ans/rfw
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