Inmet Mining Corp. has arranged a $500-million equity financing through Ellington Investments Pte. Ltd., a subsidiary of a Singapore-based investment company with holdings in Asia and Latin America.

Net proceeds from the agreement will be used by Inmet for the development of the Toronto-based mining company's Cobre Panama copper, gold and molybdenum project in Panama.

The deal is the latest evidence of renewed interest in copper, a base metal used in a wide variety of industrial and construction purposes, and more relaxed credit conditions.

Inmet's agreement calls for Ellington to buy about 9.3 million subscription receipts at just over $54 each.

The receipts can be exchanged on a one-for-one basis for shares of Inmet, or about 14 per cent of its outstanding common stock, after certain conditions are met.

Ellington will have a right to nominate one member to Inmet's board of directors, so long as Ellington or its affiliates own at least five per cent of Inmet.

Ellington or other members of the Singapore-based Temasek group agreed to hold their Inmet shares for at least a year, subject to certain conditions.

Temasek Holdings is an Asia investment company with about a portfolio worth about US$119 billion. It has 12 affiliates and offices in Asia and Latin America,

The investing group will have the opportunity to maintain their proportional stake in Inmet if it issues more stock.