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Pembridge Resources secures US$30mln off-take financing for the producing Minto mine
Minto Acquisition Update
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
11 October 2018
Minto Acquisition Update
London, United Kingdom - Pembridge Resources plc (LSE:PERE) ("Pembridge" or the "Company"), announces that further to the announcements released by the Company on 15 February 2018 (the "February Announcement") and 11 June 2018 (the "June Announcement"), which disclosed the proposed acquisition of Minto Explorations Limited ("Minto") (the "Minto Acquisition"), the Company has determined that a renegotiation of the acquisition terms with Capstone Mining Corporation ("Capstone") is necessary to ensure the best possible outcome for Pembridge and its shareholders.
Since the June Announcement, market conditions have made it increasingly difficult to close the equity financing element of the Minto Acquisition on terms that would be favourable to all concerned parties.
Following this decision, Capstone has announced its intention to implement a phased care and maintenance programme at the Minto mine until the Minto Acquisition can be completed. As a consequence of this programme, underground production at the Minto mine will halt and Capstone will manage the site to ensure it remains in a safe and stable condition while Pembridge prepares a revised offer for Minto.
David Linsley, Chief Executive Officer of Pembridge Resources commented:
"Further to our announcements on 15 February and 11 June 2018, the Pembridge team has worked tirelessly to complete the Minto Acquisition, however the equity and commodity markets have been extremely challenging.
Commitments for the significant majority of the financing are still in place, and we are in ongoing discussions with a number of parties to complete the final elements of a revised offer for Minto. Capstone and our off-take partners have been very supportive of the decision to restructure the terms of the Minto Acquisition. It is therefore anticipated that an amended agreement will be reached in the best interests of both Pembridge, Capstone and their respective shareholders in the near future."
The person who arranged for the release of this announcement on behalf of the Company was David Linsley, Chief Executive Officer.
About Pembridge Resources plc
Pembridge is a mining-focused special purpose acquisition company admitted to listing on the standard segment of the Official List by the United Kingdom Financial Conduct Authority and to trading on the main market for listed securities of London Stock Exchange plc.
The Company's management is composed of a team of senior leaders with experience in various board and executive positions with a complementary mix of expertise in geology, engineering, project appraisal, and commercial development across a wide range of commodity groups and mining jurisdictions.
Minto is an open pit and underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. The Minto mine has been in continuous production since 2007 and is presently the only operating mine in Yukon territory. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began some 12 years ago.
Pembridge Resources plc: +44 20 7917 2968
David Linsley, Chief Executive Officer
Paul Fenby, Chief Financial Officer
GMP Securities - Canada: +1 416 367 8600
SI Capital - United Kingdom: +44 14 8341 3500
Tavistock Communications: +44 20 7920 3150
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