One of the uglier mining disputes in recent memory is apparently over as junior company Petaquilla Copper Ltd. (OTC:PTQLF) agreed to get taken over by Inmet Mining Corp. (OTC:IEMMF) for a little over C$350-million. The shares jumped more than 15% Tuesday morning.
The two companies, along with Teck Cominco Ltd. (NYSE:TCK), are joint venture partners on the Petaquilla copper project in Panama. But both Inmet and Teck were furious with Petaquilla. The junior company was doing its own work on the project outside their agreement, and it launched a legal action to try and reclaim Teck's interest for itself.
Inmet finally decided enough was enough, and made a hostile C$2.00-a-share cash offer for Petaquilla in early July.
Petaquilla tried to dismiss the offer almost right away. But six weeks later, it quietly approved a bid that is only 10% higher, at C$2.20 a share. The company sold units in a private placement at C$3.50 a share last year before going public in December.