Petaquilla Copper Ltd. Updates its Development Strategy

About this update from Petrox Resources Corp.

[{"type":"text","content":"\n\n\n\nTrading Symbol\n\n\nTSX: PTC\n\n\nVANCOUVER, May 14 /CNW Telbec/ - Petaquilla Copper Ltd. (the "Company")\nis pleased to provide an update on its corporate strategy for the continuing\ndevelopment of the Petaquilla Mining District, Panama.\n\n\nThe Company welcomes the appointment of Inmet Mining Corporation\n("Inmet"), its partner, as manager of the Petaquilla Copper Project, and\nconsiders this to be a key step in maintaining the schedule to bring the\nworld-class copper-gold porphyry deposit to production.\n\n\nOn April 28, 2008, the Company commenced arbitration proceedings against\nTeck Cominco Limited ("Teck"), on the basis that Teck had not fulfilled the\npreconditions necessary to exercise its option to acquire one half of the\nCompany's interest in the property. If the Company is successful in the\nproceedings, the Company will regain a 52% interest in the Project.\n\n\nThe arbitration proceedings have inevitably introduced an element of\nuncertainty with respect to Inmet's proposed work plan for the Project. The\nCompany realized that this would be an unavoidable consequence of making the\ndecision to arbitrate, but the board determined that the potential benefits to\nthe Company's shareholders of regaining a 52% interest in the Project far\noutweighed the possibility of a temporary scaling down of development\noperations. The Company intends to approach Inmet with a strategy that will\nmitigate the risk to Inmet during the currency of the arbitration proceedings,\nand thus allow the development work to continue. The ultimate decision on the\nscale of Inmet's proposed work plan, however, is currently out of the\nCompany's control.\n\n\nAt the present time, the Company holds a 26% fully carried interest in\nthe Petaquilla Copper Project. If the arbitration proceedings are resolved in\nthe Company's favour, the Company will hold a 52% participating interest in\nthe Project, and Teck will have a small net profit interest. If the\narbitration proceedings are not resolved in the Company's favour, the Company\nwill continue to hold the 26% carried interest, and Teck will have to fund 52%\nof all costs and will hold a 26% equity interest in the Project.\n\n\nOn March 26, 2008, Inmet and Teck announced an agreement between them\nwhich, in effect, extended Teck's deadline for making a commi...

More updates from Petrox Resources Corp.