Pembridge Resources - Acquisition of Minto Mine from Capstone Mining
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Fully Funded Acquisition of
from Capstone Mining Corp
The consideration for the Acquisition, which is unconditional, comprises up to
In addition, financing of
The Company expects to recommence commercial production at Minto during the fourth quarter 2019.
· Staged payment structure of the Acquisition will allow Minto to achieve a cash generative operating state before any payments are made to Capstone
· The first payment from Minto to Capstone of
· A second payment from Minto to Capstone of
· A final payment from Minto to Capstone of
· The Financing Agreement allows Pembridge to immediately commence the restart process at Minto
· Initiatives have been identified by the Company to seek to extend mine life and significantly improve on previous operating margins at Minto
· Pembridge, Minto,
o Pembridge has right of first refusal to buy out
· The Transaction assumes economic benefits only from Minto, not from any further transactions that may be entered into by Pembridge
· Concurrent with signing of the SPA,
· An updated investor presentation is available on the Company's website www.pembridgeresources.com
"We have said all along that the acquisition of Minto represents a transformational opportunity for Pembridge and its shareholders which is why we continued to pursue the Transaction despite last year's downturn in commodity markets and the challenging environment for raising capital. While market conditions impacted closing of the Transaction, we were able to use this time to achieve a deal and financing package which we expect to be value accretive for Pembridge shareholders.
We welcome our new partners,
"I congratulate the Pembridge management team who have persevered throughout the past 12 months to complete the Transaction. It was vital to ensure that the Company achieved favourable deal terms rather than pursuing a deal at any cost regardless of the time it may take to complete.
The opportunity offered by Minto aligns with our goal of acquiring a producing or near production mining operation, to which we can add value. While we very much see Minto as a cornerstone asset, the Pembridge management team and board of directors continue to evaluate further acquisition and investment opportunities, consistent with our strategy to build Pembridge into a mid-tier mining company."
A prospectus, which details the terms of the Transaction, will shortly be re-submitted to the
The person who arranged for the release of this announcement on behalf of the Company was
NOTES TO EDITORS
Pembridge is a mining-focused special purpose acquisition company admitted to listing on the standard segment of the Official List of the
The Company's management is composed of a team of senior leaders with experience in various board and executive positions with a complementary mix of expertise in geology, engineering, project appraisal, and commercial development across a wide range of commodity groups and mining jurisdictions.
Minto is an open pit and underground copper-gold-silver mine located in central
About Lion Point
Lion Point Capital is a global special situations investment adviser based in
David Linsley, Chief Executive Officer
Paul Fenby, Chief Financial Officer
This information is provided by RNS, the news service of the
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Market Cap: £7.9 m
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