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Inmet Urges Shareholders Reject "Inadequate" First Quantum Offer in Open Letter; Inmet, First Quantum, Up Late Morning

Inmet Mining Corporation (IMN.TO) today posted an open letter to its shareholders regarding the unsolicited offer from First Quantum Minerals Ltd. (FM.TO) to acquire Inmet.

In its letter, Inmet said,

"The First Quantum offer was too low when it was worth $72.00 in November; it is now worth significantly less.

"While the long-term fundamental value of Inmet has not changed, the value of the First Quantum offer has declined to $67.70 as of yesterday's closing price. In fact, the pro-rated value of the First Quantum offer has not met or exceeded $72.00 except on only four trading days out of 72.

"Inmet's operating mines have lower operating costs and reside in more stable jurisdictions than First Quantum's mines. This will protect you in a downward market and provide you with greater upside in a rising metal price environment.

"Nothing has changed since First Quantum mailed its bid circular to Inmet shareholders on January 9, 2013 that would cause the Special Committee or the financial advisors, CIBC and Scotia Capital, to change their view that the offer is inadequate, from a financial point of view, to Inmet shareholders.

"As an Inmet shareholder, you should expect to do better as we progress with the development of Cobre Panama, which is fully financed and permitted."

Inmet Mining is up $1.28 (1.89%) to $68.99.

First Quantum is now trading at $20.08, up 85 cents (4.42%).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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