leadf
logo-loader
viewPembridge Resources PLC
(
LSE:PERE
)

Pembridge Resources hails plans for Minto mine to go public on TSXV

The London-listed company plans to invest in the associated fundraising to keep its stake at roughly 11%

Pembridge Resources PLC -

Pembridge Resources PLC (LON:PERE) hailed an agreement by which the Minto copper project in Canada, in which it owns a major stake, will list on the TSX Venture Exchange via a reverse takeover.

Minto Explorations Ltd will reverse into a Canadian shell company named 1246778 BC LTD, known as 778, and list the shares on the TSX under the new name of Minto Metals Corp, which will own 100% of the Minto mine.

In conjunction, Minto will aim to raise C$40-45mln at a price of C$2.60 to C$2.80, implying a pre-money market capitalization for Minto Metals of up to C$170mln.

Brokers Stifel and Raymond James have been given an option to increase the fundraise by another C$6.75mln.

The offering is expected to close next month and the reverse takeover is expected to be completed in the third quarter.

Pembridge intends to participate in the placement with the aim of holding roughly an 11% stake in Minto Metals, in line with its current economic interest.

It is also proposed that Gati Al-Jebouri, chief executive officer and chairman Pembridge, will have a seat on the board of Minto after the listing.

“This go-public RTO represents the next chapter in the Minto story and an opportunity for new investors to get involved in a growing business,” Al-Jebouri said. 

With a recently published NI 43-101 preliminary economic assessment technical report confirming an eight-year life of mine for Minto, with potential for further extension, he said current copper prices support the expected market capitalization of Minto Metals of more than C$200mln after the capital raise. 

“Good progress has already been made at Minto and the RTO and associated Minto capital raise will help achieve the further expansion of the mine life, thus revealing the full value of the mine. 

“I strongly believe having 100% of the Minto mine listed on a public exchange should help remove the current disconnect between the Pembridge share price and the materially higher underlying value of Minto.”

Quick facts: Pembridge Resources PLC

Follow
LSE:PERE

Price: 5.475 GBX

Market Cap: £4.87 m

Add related topics to MyProactive

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

NO INVESTMENT ADVICE

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 named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Pembridge Resources reveal 2021 drilling plans for Minto, 'recognising its...

Pembridge Resources PLC's (LON:PERE) Gati Al-Jebouri joins Proactive London after announcing their 2021 exploration plans for the Minto copper project in Canada. The plans are to explore the highly prospective and undeveloped parts of the Minto Claims area after the senior management of Minto...

on 24/5/21

2 min read