TORONTO, CANADA--(Marketwire - March 7, 2011) - On March 3, 2011, Inmet Mining Corporation (News - Market indicators) (Inmet) announced that the Panamanian Government intended to repeal Law 8 which was brought into effect in mid-February of this year.
To provide further clarity, Inmet wishes to state the following facts:
* Cobre Panama and its development by Inmet is governed by Law 9 (enacted 1997), which is unaffected by the intended repeal of Law 8. A copy of Law 9 is available on Inmet's website.
* Law 8 (enacted February 2011) concerns modifications to the Panamanian Mineral Resources Code (enacted 1963), that would, among other things, clarify foreign government ownership of Panamanian mining concessions. As to the potential investment of foreign government owned entities in the project, Inmet will seek further clarification during the repeal process but remains of the opinion that such investment is still a viable option.
* In any event, given Inmet's enhanced financial strength and the significant advancement of the Cobre Panama Project since Inmet acquired 100 percent ownership in 2008, Inmet continues to have a number of alternatives available to fund the development of the project.
* Inmet expects to continue with its planned development activities for Cobre Panama which include completion of basic engineering later this year, construction commencing in 2012, and copper production commencing in 2016. Through its subsidiary, MPSA, Inmet has been involved in Panama for over 20 years, developing strong and successful working relationships with the local communities in advancing the development of Cobre Panama. Inmet looks forward to working with the Panamanian authorities to ensure that the economic potential of Cobre Panama and the significant benefits it can bring to all stakeholders are realized.
Inmet is a Canadian-based global mining company that produces copper and zinc. Inmet has interests in three mining operations in locations around the world: Çayeli, Las Cruces, and Pyhäsalmi. Inmet also has a 100 percent interest in Cobre Panama, a development property in Panama.