Panama's mining code proposal raises questions over Inmet project
Plans by Panamanian President Ricardo Martinelli to repeal part of his country's mining code that allows investments from foreign governments has raised questions about the future of Inmet Mining's (IMN.TO) flagship Cobre Panama project in Panama.
Inmet's shares fell more than 7% and closed at $64 on the TSX on Friday, a day after the President's announcement.
The Panamanian news couldn't have come at a worse time for Toronto-based Inmet, which is in the midst of a heated takeover battle with Equinox Minerals Ltd.(EQN.TO) for control of rival Lundin Mining Corp (LUN.TO). Inmet's Panama project, which is expected to produce more than 250,000 tonnes of copper a year, is a core aspect of its bid, the Globe and Mail newspaper notes.
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