Proactive Investors - Run By Investors For Investors

Pembridge Resources to renegotiate Minto acquisition terms amid difficult market conditions

The company said that since securing financing in June, market conditions had made it difficult to close the deal “on terms that would be favourable to all concerned parties”
renegotiate contract
David Linsley, chief executive, said an agreement would be reached “in the near future”

Pembridge Resources PLC (LON:PERE) will renegotiate its acquisition terms for the Minto copper-gold-silver mine in the Yukon with Capstone Mining Corporation as a result of “increasingly difficult” market conditions.

The company said that since securing US$30mln to finance the purchase of Minto in June, market conditions had made it more difficult to close the equity financing element of the deal “on terms that would be favourable to all concerned parties”.

READ: Pembridge Resources to use Minto acquisition as a platform for future growth

Following the decision to renegotiate the terms, Capstone would implement a phased care and maintenance programme at the site until the acquisition was completed, which would result in a halt in production.

Capstone would then maintain the mine in a safe and stable condition while Pembridge prepared a revised offer for the site.

David Linsley, chief executive of Pembridge, said that the equity and commodity markets had been “extremely challenging” during the acquisition process, adding that the commitments for the “significant majority” of the financing were still in place and an amended agreement would be reached “in the near future”.

View full PERE profile View Profile

Pembridge Resources Timeline

Related Articles

TGME plant
February 05 2019
A scoping study for Theta Hill released in October 2018 delivered a positive result for the shallow, high-grade gold resource.
A vessel is loaded up, ready to leave Esperance port with Bald Hill lithium concentrate bound for China
January 16 2019
The merged companies had been equal partners on WA’s Bald Hill spodumene mine.
February 06 2019
Chairman Brian Stockbridge expects 2019 to be "transformational"

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use