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General mining & base metals

Pembridge Resources says Minto moves forward with reverse takeover

The capital raise associated with the reverse takeover has so far raised C$31mln

Pembridge Resources PLC (LSE:PERE) said the reverse takeover by Minto Explorations Ltd of shell company 1246778 BC Ltd (778) is moving forward with the two companies entering into an amended agreement.

Pembridge announced earlier this year that the Minto copper project in Canada, in which it owns a major stake, planned to list on the TSX Venture Exchange via a reverse takeover.

The resulting company will be renamed Minto Metals Corp, which will own 100% of the Minto mine.

READ: Pembridge reveals third-quarter operating results from Minto mine

The main change under the Amended and Restated Amalgamation Agreement announced today is that Minto will implement a share consolidation on a ratio of one post-consolidation share to every 12 pre-consolidation shares, Pembridge said in a statement.

It said the capital raise associated with the reverse takeover has now closed a second tranche. In addition to the C$16.4mln already raised, a further C$14.6mln has been committed, increasing the aggregate proceeds to C$31mln.

"This RTO process is complex but crucial to the future development of Minto and we are very pleased to see this progress towards its completion," said Pembridge chief executive and chairman Gati Al-Jebouri.

Pembridge shares rose 2.04% to 6.25p.

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