December 03, 2008

Inmet Mining and Teck Cominco sign arrangements for Petaquilla

Inmet Mining Corporation and Teck Cominco Limited announced that they have entered into an agreement to proceed with the development of the Petaquilla copper project in Panama.

Under the agreement Teck Cominco and Inmet Mining will work closely together during this next crucial phase of project development. Inmet Mining owns a 48% interest in Minera Petaquilla SA, the Panamanian company that holds the Petaquilla concession. Petaquilla Copper Ltd currently owns a 52% interest in Minera Petaquilla.

Under the existing Minera Petaquilla shareholders agreement between Teck Cominco, Inmet Mining and Petaquilla Copper in connection with the Petaquilla project, Teck Cominco may acquire from Petaquilla Copper a 26% interest in Minera Petaquilla by committing to participate in work plans and budgets and to fund up to 52% of development costs for the project through to commercial production. Teck Cominco would receive 52% of project cash flow until it has recouped its entire investment plus interest on amounts advanced on behalf of Petaquilla Copper. In lieu of receiving funding from Teck Cominco, Petaquilla Copper may elect, within 30 days of Teck Cominco's commitment, to finance all or part of its 26% share of development costs.

Teck Cominco and Inmet Mining will make the commitments to proceed contemplated by the existing Minera Petaquilla shareholders' agreement. Inmet Mining and Teck Cominco have agreed that on an interim basis Inmet Mining will provide additional personnel to an affiliate of Teck Cominco that will act as operator of the project, and will fund project expenditures instead of Teck Cominco. Teck Cominco has been funding 100% of front end engineering and design costs to date. At the end of the interim period Teck Cominco may elect either to continue participating in the project and resume funding or to sell its interest.

Mr Don Lindsay president & CEO of Teck Cominco said that "We have a high regard for the enormous potential of the Petaquilla project. This arrangement with Inmet Mining allows the Petaquilla project to proceed expeditiously, while preserving Teck Cominco's flexibility to progress other projects in our growth pipeline such as the Quebrada Blanca hypogene project, the Andacollo hypogene project and several other growth projects in oil sands and gold."

Mr Richard Ross chairman & CEO of Inmet Mining said that "This agreement allows Inmet Mining to advance Petaquilla to the next level and gives us the opportunity to realize the full value of the project. Petaquilla is a world class project and an important element of our growth strategy."