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Strategic Alliance, Advance Payment & Offtake

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RNS Number : 1971G
Pembridge Resources plc
22 July 2019
 

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. 

 

22 July 2019

Announcement of Strategic Alliance, Advance Payment and Off-Take financing arrangement with Sumitomo

 

London, United Kingdom - Pembridge Resources plc (LSE:PERE) ("Pembridge" or the "Company"), is pleased to announce that its subsidiary Minto Explorations Limited ("Minto") has signed an agreement with Sumitomo Canada Limited", a subsidiary of Sumitomo Corporation ("Sumitomo")  (the "Agreement") to receive a working capital facility ("Advanced Payment") in connection with an off-take agreement for 55,000 tonnes of copper concentrate (the "Off-Take"), to be produced by the Minto mine.  The Advanced Payment and the Off-Take are part of a broader strategic relationship between Sumitomo and Pembridge, In addition the parties are working together towards finalising a pre-payment facility agreement (the "Pre-Pay").

Key highlights of the Agreement

·    The Off-Take is for 100% of the copper concentrate produced at the Minto mine delivered on a cost, insurance and freight (CIF) basis to a nominated Japanese port and shall remain in place until (i) 55,000 tonnes of copper concentrate delivered, or (ii) 31 December 2020, whichever is later.

·    The Advanced Payment shall be made by Sumitomo to Minto on a monthly basis, for 90% of the estimated value of concentrate produced that month with final payment due on delivery to Japan.

·    The Advanced Payment allows Minto to immediately monetise each month's production, eliminating the historically large working capital requirements when the site is unable to transport concentrate owing to seasonal weather disruptions.

·    The Advance Payment is subject to interest payable of USD 3 month LIBOR plus 1.5 per cent., until Sumitomo has taken delivery of the concentrate in Japan.  

·    Total quantity and period of the Off-Take will be renewed and extended upon the completion of the Pre-Pay.

David Linsley, Chief Executive Officer of Pembridge stated: "We are delighted to secure  this agreement with Sumitomo Corporation, a group that share our vision for Minto and Pembridge. With their extensive copper market experience, entering into this is an important event for Pembridge and our shareholders.  We look forward to developing a long-term relationship with our new partners as we seek to grow Pembridge through strategic acquisitions and development of the Minto Copper belt."

The person who arranged for the release of this announcement on behalf of the Company was David Linsley, Chief Executive Officer. 

ENDS

NOTES TO EDITORS

About Pembridge Resources plc

Pembridge is a mining company admitted to listing on the standard segment of the Official List of the FCA and to trading on the main market for listed securities of the LSE. Pembridge 100% owns Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.

About Minto Explorations Limited

Minto is wholly owned subsidiary of Pembridge. It operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway.  The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance.  In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began some 13 years ago.

 

Enquiries:

Pembridge Resources plc:                                                              +44 20 7917 2968

David Linsley, Chief Executive Officer

Paul Fenby, Chief Financial Officer

 

Brandon Hill Capital - United Kingdom:                                       +44 (0)20 3463 5016

Jonathan Evans

 

SI Capital - United Kingdom:                                                          +44 14 8341 3500

Nick Emerson

 

Tavistock Communications - United Kingdom:                           +44 20 7920 3150

Charles Vivian

Gareth Tredway

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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Quick facts: Pembridge Resources

Price: 1.275

Market: LSE
Market Cap: £2.85 m
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