TORONTO (miningweekly.com) – Gold miner Petaquilla Minerals and base metals miner First Quantum Minerals on Thursday struck an accord that would see Petaquilla receive $60-million for transferring a range of assets and property rights.

The agreement was aimed at completely separating First Quantum subsidiary Minera Panama’s (MPSA’s) $6.5-billion Cobre Panama copper mine from Petaquilla’s Molejon gold mine, both operations located next to each other in the Colon province of Panama.

Under terms of the agreement, Petaquilla would have to transfer to MPSA 99 735 ha of exploration concession applications in the region; 551.5 ha at the north end of its Molejon mining concession area to support current planning of the Cobre Panama mine development; 833.3 ha of land (both title and possession rights) comprising all Petaquilla landholdings within a 30 km radius of the Cobre Panama project (excluding its Molejon concession); and waive any rights to the Botija Abajo, Brazo, Balboa, Colina, Botija, and Valle Grande copper deposits or to any mineral deposits outside Petaquilla's residual portion of the Molejon mining concession area.

The agreement also provided that the aggregates and screened rock purchase agreement be terminated without liability to either party; that Petaquilla transfer to MPSA the sole ownership of the Llano Grande road, which is the main access road to Cobre Panama, and ownership of other access roads, as well as right of way along MPSA's electrical distribution corridor; and that Petaquilla provide future collaboration, assistance and support regarding MPSA's current surface rights applications, Law 9 amendments and any possible future expansions of the Cobre Panama project.

In return, MPSA paid Petaquilla $3.3-million for signing the agreement, which would be followed by $46.7-million if Petaquilla had met specific deliverables before July 6. A further $5-million would be payable after a year, conditional on certain approvals being granted, with a final $5-million payable 30 days after the first ore shipment from the Cobre Panama project, provided Petaquilla had fulfilled all of the obligations and achieved all milestones as set out in the agreement.

This was the second amendment to an agreement between the two firms inFebruary last year, at about the same time that Vancouver-based First Quantum started its $5.1-billion hostile takeover bid for Inmet Mining, and which entailed a $150-million commercial agreement for the companies’ projects in Panama.

Petaquilla and Inmet, former joint venture partners, had successfully negotiated other arrangements in the past, namely the 2005 Molejon gold project agreement, which led to Petaquilla's gold mining operations at its Molejon gold deposit.