Operator of the Minto Mine to be Appointed
21 January 2020
Pembridge Resources plc
Operator of the Minto Mine to be Appointed
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company"), and together with its subsidiaries, the "Group"), is pleased to announce the decision to appoint an operator of Minto Explorations Ltd ("Minto").
Since closing the transaction to acquire Minto in June 2019, the Board of Directors of Minto (the "Minto Board") has been closely involved with the restart of the operations of the Minto mine. The Minto Board now wishes to appoint a third-party operator (the "Operator") to allow Pembridge to focus on complementary activities, including evaluating new investment opportunities, which will also reduce costs attributable to the Company.
In line with this desire, the Minto Board has passed a resolution to appoint the Operator under a contract with Minto (the "Appointment"). The Operator will act as the advisor to the Minto General Manager and provides direction to senior members of staff on day-to-day operations.
The Appointment has also been confirmed by the Joint Advisory Committee ("JAC") of Minto, which represents the combined ownership interests of Pembridge, Cedro Holdings and Copper Holdings in Minto.
The Appointment does not change any ownership, control of the Minto Board or Pembridge's voting rights in Minto, and therefore the Company continues to maintain its 100% of the voting rights and 33% of the economic benefits in Minto. The Minto Board consists of Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board for Pembridge Resources; Guy Le Bel, Non-Executive Director of Pembridge Resources; and Paul Fenby, Chief Financial Officer of Pembridge Resources.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board said: "Pembridge has worked hard to get the mine into production since it was acquired in June 2019. As I have indicated in previous communications, Pembridge has a three-phase development, the first phase being the strengthening of the finances and operations of Pembridge and Minto. It has become apparent that there are a number of inefficiencies associated with the time zone difference between the UK and Yukon. Therefore, installing an Operator for day-to-day support to Minto management not only aims to improve the efficiencies of operating Minto, but reduces the management costs attributable to Pembridge. This step completes phase one of our development strategy and allows Pembridge to concentrate on its next phase of growth.
Laz Nikeas, Copper Holdings said: "We thank Pembridge for all of their effort in restarting the Minto mine. To maximise Minto's full potential going forward, we support Pembridge's decision to insert a dedicated Operator that is closer to the operations."
Dan Chandra, Cedro Holdings I - said: "The restart of the Minto mine was an important step in making our investment a success. While there is significant work to be done, I believe that the Appointment is an important second step to ensure that the future development of the Minto mine will be even more successful."
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. Minto, a subsidiary of Pembridge, is 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.
About Copper Holdings LLC
Copper Holdings is a private investment vehicle based in New York run by a team of experienced mining investors. Copper Holdings owns 33% (in Class B shares) of Minto.
About Cedro Holdings I, LLC
Cedro Holdings I, LLC is an entity managed by Lion Point Capital, a registered investment adviser based in New York that seeks to invest throughout the capital structure of public and private companies globally. Cedro Holdings I owns 33% (in Class B shares) of Minto.
For further information contact:
Pembridge Resources plc: +44 (0)20 7917 2968
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board
Paul Fenby, Chief Financial Officer
Thomas Horton, Vice President Corporate Development
Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016
Jonathan Evans
SI Capital - United Kingdom: +44 (0)14 8341 3500
Nick Emerson
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 rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 1 day ago Close Brothers Group
- 1 day ago Savannah Energy
- 1 day ago Mid Wynd International Inv Trust
- 1 day ago Dillistone Group
- 1 day ago SSP Group