The buyer is Korea Panama Mining Corporation (KPMC), a holding company owned by the South Korean KS-Nikko Copper and the state run South Korean company Korean Resources Corporation.
The amount represents 20% of development costs of the mine up to October 2009 when the purchase option between Inmet and KPMC was signed.
From now on, KPMC cover 20% of development costs and implemented a fix that will allow KPMC buy Minera Panama (a subsidiary of Inmet and owner of the project) 20% of production concentrated in the project, subject to KPMC provide additional funding.
The total project cost is estimated at $5 billion and is expected to produce 255,000 tons of copper annually for 30 years.
Source: Reuters
More on this topic
October 2009
Korean company LS-Nikko could invest up to $260 million in copper mining project "Cobre Panama".
LS-Nikko signed an option agreement with Canadian company Inmet Mining Corp, owner of the project. Under the agreement, LS-Nikko will have the option to acquire between 20% and 30% of the copper mining project "Cobre Panama" (Minera Panama S.A.), depending on how much it invests in it.
March 2010
LS-Nikko will take a 20% stake in the copper mining project “Cobre Panama”.
The remaining 80% will be controlled by Inmet Mining Corporation. It will be located in Coclé del Norte, and will require a $3.5 billion investment.
From the press release: “LS-Nikko, through its wholly owned subsidiary, Korea Panama Mining Corporation (KPMC), has decided to keep its option to acquire an equity interest in Minera Panama, S.A.
May 2012
After closing the bond issuance with $1.5 billion, Inmet Mining has announced that it has $6.2 billion funding available, to cover the cost of the mine in Donoso, Panama.
The board of Inmet Mining, parent company of Minera Panama, has given permission for the construction of a copper mine in Donoso, Colon province.
March 2011
The Mining Code’s reform allows Inmet to complete financing for $ 5.000 million needed to exploit Minera Panama’s copper mine.
Specifically, the reform opened the possibility for foreign states to invest in mining projects. For Canadian company Inmet, this could translate into including Korean state company Kores, representing a project investment of $ 625 million.
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