Canadian mining company Inmet Mining has announced the closure of a $500m senior notes offering that it will use to develop the Cobre Panama copper project in Panama.
The notes carry an annual interest rate of 7.5% and will expire in 2021.
The proceeds will be used to develop and potentially expand the Cobre project and for general corporate purposes.
Located 120km west of Panama City and 20km from the Caribbean coast, the project comprises four zones spread across 13,600ha in the district of Donoso, Colon province, in the Republic of Panama.
In November 2012, Inmet reported a 27% increase in proven and probable mineral reserves at the project, enhancing Cobre Panama's total projected copper to approximately 26 billion pounds.
Additional mineral reserves were identified from the Balboa, Brazo and Botija Abajo deposits.
The company has integrated the additional reserves into a revised mine plan, thereby extending the projected mine life from 31 to 40 years.
Reserve estimates were made based on projected costs of copper at $2.25 a pound, gold at $1,000 an oz and silver at $16 an oz.
Inmet owns an 80%-interest in Minera Panamá, which holds the Cobre Panama concession, while LS-Nikko Copper, through its wholly-owned subsidiary Korea Panama Mining (KPMC), owns the remaining 20% interest in the Cobre Panama copper project.
Image: The Cobre project is located 20km from the Caribbean Sea coast. Photo: Inmet Mining Corportion.