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First Quantum sticks to guns on $5.1 billion takeover

Monday, March 25, 2013

Canada's First Quantum Minerals is sticking to its guns on Cobre Panamá, saying it will bring the giant new copper mine on line faster and more cheaply than its previous owner could.

The Vancouver-based miner acquired the property on Friday after holders of 85.5 per cent of Inmet Mining shares tendered to its hostile takeover bid and Inmet recommended the deal, ending a six-month battle for the Toronto company.

But it will also cost an eye-popping $6.2-billion to build – in addition to the $5.1-billion acquisition price – and is a daring bet at a time when the industry shies from takeovers and puts the brakes on new developments.

Source: Globe and Mail