11th Jun 2018 14:01
LONDON (Alliance News) - Mining company Pembridge Resources PLC said Monday that it has signed a heads of terms agreement with a undisclosed Japanese trading house for a GBP30 million financing package.
The financing is to be used to acquire Minto mine in Canada from Capstone Mining Corp. Shares in Pembridge Resources are suspended ahead of the acquisition and last closed Friday at 3.60 pence.
The offtake agreement will be for 125,000 tonnes of copper concentrate produced at Minto. If this amount is not produced before December 13, 2021, the Japanese trading house will instead be entitled to all the copper concentrate produced at Minto until that date.
The copper concentrate will be sold at the gate, allowing Pembridge to eliminate its working capital requirements for seasonal transportation issues.
"The backing from a leading global Japanese trading house...is an important event for Pembridge and our shareholders as we approach the completion of the acquisition of Minto from Capstone," said Chief Executive Officer David Linsley.
Pembridge and the trading house will work together on Minto's development.
Related Shares:
PERE.L