New wrinkle in battle over mining in El Salvador?(Read article summary)
El Salvador and Canadian mining firm Pacific Rim are in a high-profile arbitration over permitting. What does the company's sale to an Australian firm mean for the Salvadoran mining sector?
• A version of this post ran on the author's blog. The views expressed are the author's own.
The Canadian gold mining company Pacific Rim announced on Oct. 8 that it had signed an agreement to be acquired by OceanaGold Corp., an Australian mining firm. The acquisition price reflects a premium of approximately 50 percent above where Pacific Rim shares had been trading.
Pacific Rim currently has a high profile international arbitration pending against the government of El Salvador relating to the government's refusal to issue a permit to allow the mining company to begin operations. Apparently OceanaGold feels that the arbitration case, or the possibility of a negotiated resolution, is strong enough to warrant the investment in Pacific Rim.
According to the press release announcing the deal: