Currently an acquisition vehicle or SPAC, Pembridge will pay US$37.5mln in cash to vendor Capstone Mining plus shares equivalent to a 9.9% stake in the enlarged company.
Pembridge will then raise a further US$50mln to refinance the company and re-start exploration.
Minto has been operating for ten years already, with over US$350mln invested so far but Capstone’s current plan only runs until 2021.
In 2017, the open pit mine produced 16,332 tonnes of copper, 170,809 ounces of silver and 25,205 ounces of gold.
This year, Capstone has forecast 19,000 tonnes of copper at a cash cost of US$2.35 to US$2.45 per pound.
Under existing plans, there will be positive underlying profit [EBITDA] and cash flow over the next four years.
Pembridge believes it can reduce costs significantly while extending the current four-year mine life through restarting exploration, which Capstone halted in 2012.
David Linsley, Pembridge’s chief executive said that Minto represented a transformational opportunity and will be used as a platform for future growth.
Shares have been suspended with completion expected in April.