First Consideration Payment to Capstone
1 April 2021
First Consideration Payment to Capstone
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that the first payment of US$5 million of the purchase price for the acquisition of Minto Explorations Ltd. ("Minto") from Capstone Mining Corp. ("Capstone") has been made.
This payment comes in accordance with the Share Purchase Agreement between Pembridge and Capstone, dated 3 June 2019, the purchase price for the acquisition of Minto is defined as US$5 million payable by 31 March 2021 plus an additional up to US$15 million payable subject to copper price levels as set out an RNS dated 4 June 2019. On 29 June 2020 the Amended and Restated Shareholders' Agreement ("Agreement") between the Company and its fellow investors in Minto was signed as set out an RNS dated 1 July 2020. As per the Agreement, Minto shall pay the deferred consideration payments to Capstone on behalf of Pembridge and the first payment of US$5 million noted above was made by Minto on 30 March 2021.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:
"The Minto operations have developed significantly since the acquisition of Minto in June 2019 and have withstood the challenges posed to it over the last 18 months by the Covid-19 pandemic and resulting market conditions. The support from the Yukon government and the leadership of the Selkirk First Nation, on whose ground Minto is located, have played an important part in ensuring the success of Minto. The strong support of all the shareholders in Minto and the commitment of the Minto team operating the mine have ensured that today Minto is in a position to pay the first part of the deferred purchase price. I have every confidence that we are now on a secure path of growth and more successes for our investment in Minto."
Cautionary Statement
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company's ability to predict or counteract the potential impact of COVID-19 on factors relevant to the Company's business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
ENDS
NOTES TO EDITORS
About Pembridge Resources plc
Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.
About Minto Explorations Limited
Minto operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired Minto from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.
Enquiries:
Pembridge Resources plc: +44 (0) 20 7917 2968
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board
David James, Chief Financial Officer
Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016
Jonathan Evans
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