NEW YORK Inmet Mining
Corp. intends to raise $500 million in a senior notes offering
in order to fund the development of its Cobre Panama copper
project, the company said.
Toronto-based Inmet, which
priced the offering late last week, said it will use the
proceeds to fund construction of the
copper-gold-silver-molybdenum project in Panama. The recent
offering comes in addition to a $1.5-billion offering completed
in May (amm.com, May 21).
Inmet used bonds instead of its
own cash flow to fund construction for a number of reasons, a
company spokeswoman said.
"For one thing, that cash flow
may fluctuate depending on copper prices, and two, we can use
that cash flow for other means," the spokeswoman added.
The notes will yield 7.5 percent
to maturity and will be sold in the United States to
institutional buyers, the company said. The offering is
expected to close on or around Dec. 18.
Inmet last week said it
reappraised the contained copper reserves at Cobre Panama to 26
billion pounds, a 27-percent increase from prior estimates.
"The additional mineral reserves
have been integrated into a revised mine plan that extends the
estimated mine life from 31 to 40 years," the company said.