Inmet Mining Acquires Pyhäsalmi Mine

Inmet Mining Corporation, headquartered in Toronto, announced on December 19, 2001 that it has agreed to acquire the Pyhäsalmi copper/zinc/pyrite mine in central Finland from Finnish metals and technology giant Outokumpu Oyj for approximately $102 million. The transaction also involves long-term off-take arrangements and the formation of an alliance between the two companies under which they will co-operate in the areas of mining and mineral processing technology, smelting and refining, and the development of future mining projects. The purchase price will be satisfied by $64 million in cash, a $20 million 10-year 6 per cent subordinated promissory note and four million Inmet common shares (representing approximately 10 per cent of the outstanding shares). A representative of Outokumpu will sit on Inmet’s board. Inmet will fund a portion of the purchase price through a new $64 million five-year credit facility arranged by CIBC World Markets Inc., with Macquarie Bank, Standard Bank London and Westdeutsche Landesbank Girozentrale acting as co-arrangers.

Steve Astritis, vice-president and general counsel, Inmet, is leading the project, supported by Brian Davis, Matt Cockburn and Adam Armstrong (corporate) and Dennis Mahony (environmental) of Torys LLP. McCarthy Tétrault LLP is acting for Outokumpu with a team that includes Glen Ireland and Evgenia Ivanova (business) in London, Rene Sorell and Shea Small (business) and Douglas Thomson (environmental) in Toronto. David Kee and Simon Finch of Blake, Cassels & Graydon LLP are representing CIBC World Markets.