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.