viewPembridge Resources PLC

Pembridge Resources closes on acquisition of Minto mine

The plan is to restart production from Minto in the fourth quarter

The Minto mine has a long track record of production

Pembridge Resources PLC (LON:PERE) has signed a definitive share purchase agreement with Capstone Mining Corp (TSE:CS) for the acquisition of the Minto copper, gold and silver mine in the Yukon, Canada.

The consideration comprises up to US$20mln in total payments due to Capstone payable out of future cash flows and realisations from Minto, and based on certain hurdles linked to production levels at Minto as well as future copper prices.

WATCH: Pembridge Resources signs deal for acquisition of Minto mine in Canada

In addition, financing of US$10mln to fund the recommencement of operations has been secured from Copper Holdings, a New York-based private equity group and Cedro Holdings I, a New York based asset manager.

Production from Minto is expected to recommence in the fourth quarter of 2019. The company has also raised £400,000 of working capital at 16p per share.

 "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,” said David Linsley, chief executive of Pembridge.

“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.”


Quick facts: Pembridge Resources PLC

Price: 7.5 GBX

Market: LSE
Market Cap: £5.77 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Pembridge Resources PLC named herein, including the promotion by the Company of Pembridge Resources PLC in any Content on the Site, the Company...


Pembridge Resources' 'acknowledge Q3 success by numbers produced and opening...

Pembridge Resources' (LON:PERE) Gati Al-Jebouri talks to Proactive London about their latest operational update which 'has not stopped operating a single day' during the Coronavirus pandemic at the Minto mine. He goes on to explain their plans to continue developing a 'very clean...

on 26/10/20

2 min read