Pembridge Resources PLC (LON:PERE) has signed definitive heads of terms with a leading global Japanese trading house to receive US$30mln in prepayment financing through an offtake agreement for 125,000 tonnes of copper concentrate to be produced by the company’s Minto mine.
The offtake agreement allows Pembridge to sell concentrate from Minto at the mine gate, thus eliminating the historically large working capital requirements when the site is unable to transport concentrate owing to seasonal weather conditions.
The offtake is for 100% of the copper concentrate produced at the Minto mine delivered on a cost, insurance and freight basis to a nominated Japanese port and shall remain in place until the earlier of either 125,000 tonnes of copper concentrate is delivered, or 31 December 2021.
"Securing this agreement with such a large and sophisticated mining investor is a validation of both the great potential we see in the Minto mine and our vision of growing Pembridge using the Minto mine as a platform,” said David Linsley, chief executive of Pembridge.
“The backing from a leading global Japanese trading house, with extensive copper market experience, is an important event for Pembridge and our shareholders as we approach the completion of the acquisition of Minto from Capstone. We look forward to developing a long-term relationship with our new partners."
Minto is an open pit and underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. Minto has been in continuous production since 2007 and is presently the only operating mine in Yukon territory.