Pembridge Resources PLC (LON:PERE) confirmed it has to date loaned £1.73mln to associate Minto Explorations Ltd, and, it intends to fulfil its financing commitment to the company with a further £570,000 to be released within the next 60 days.
The £2.3mln loan was agreed in December, to fund Minto’s surety bond collateral commitments.
It will represent the fulfilment of Pembridges’s commitments under a shareholders agreement entered into last June, and, as such, ensures the AIM-quoted investment group will avoid dilution of its underlying 33% economic interest in Minto.
Pembridge also approved a new lending facility, ‘Facility C’, for up to £2mln to enable fund reviews of new investment opportunities as well as ongoing working capital needs - the company noted that the facility is substantially on the same terms as the prior ‘Facility A’ and ‘Facility B’.
It carries interest at an annual rate of 8% to be paid in arrears on the last day of each month, and, the lender will be paid an arrangement fee of 6%.
"The amount raised in Q4 2019 and subsequently loaned to Minto has mitigated the risk of significant dilution at project level following relist,” said Gati Al-Jebouri, Pembridge
“We will continue to work on developing the best operating strategy for Minto as we get more data back from the drilling and analysis of the MAG survey results.
“The Facility C funds will ensure that we are in a position to commence and review any new acquisition opportunities as they arise and cover all our working capital needs for the foreseeable future."