First Quantum Minerals says talks resume on future of Cobre Panama

First Quantum Minerals issued the following update regarding the status of the Cobre Panama mine operated by its subsidiary Minera Panama. Formal discussions between First Quantum, MPSA and the Government of Panama resumed on December 26, 2022 regarding the long-term future of the Cobre Panama mine. The talks continued on December 27 and are ongoing. The Company remains committed to seeking a mutually beneficial agreement as soon as possible. Operations at Cobre Panama continue as normal at this time with no disruption to production. MPSA received formal notification from the National Directorate of Mineral Resources of the Ministry of Commerce and Industries on December 21, 2022 of a resolution requiring MPSA to submit a plan within 10 working days of such notification to suspend commercial operations at Cobre Panama and put the mine under "care and maintenance." MPSA is working through a number of steps to respond to the resolution, of which impact and timing are uncertain, and in order to address the complex practicalities of reducing operations of the size and scale of Cobre Panama. First Quantum continues to do everything possible to support the Cobre Panama workforce and protect its investment in the mine. As the Company has advised the Government of Panama, MPSA has initiated precautionary legal measures in the Panamanian courts and through arbitration under the existing Concession Contract. First Quantum has also notified the Government of its intent to initiate international arbitration under the Canada-Panama Free Trade Agreement.