US$169 million KPMC minority stake acquisition of Minera Panama
Arias, Fábrega & Fábrega acted as local counsel for Korea Panama Mining Corp. (KPMC) in its successful acquisition of a 20% interest in Minera Panama S.A. (MPSA). The latter is the owner and developer of Cobre Panama, a large open-pit copper development project in Panama.
ARIFA assisted lead counsel Stikeman Elliot LLP in successfully structuring and negotiating the shareholder agreement and closing requirements for KPMC. This allowed the Korean entity to acquire its 20% stake in MPSA from lone shareholder Inmet Mining Corp., of Canada, for US$169 million. Inmet Mining is now the majority shareholder.
Cobre Panama, which total investment is projected at more than US$5billion over the life of the project, will produce an average of 255,000 tons of copper annually during its lifetime, which is expected to be more than 30 years. The project also produces a considerable amount of gold, molybdenum and silver.
KPMC is a joint venture between LS-Nikko Copper Inc., a leading world copper smelters, and Korea Resources Corporation (KORES).