Subscription to raise £570,000
8 January 2021
Subscription to raise 570,000
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce a subscription to raise £570,000 at 4p ("Subscription").
Subscription
Pembridge's Board has reviewed its projected costs and income for the next two years and considered the steps needed to ensure it is in a stable and healthy financial position for that two year period. The Company has lent CAD $4 million to Minto Explorations Ltd. ("Minto") during 2019 and 2020 as funding of the Surety Account relating to the Environmental Surety Bond entered into at the time of the acquisition of Minto and it is expected that Minto will begin repayment of the loan no later than Q1 2022. This means that, after this Subscription is completed and without any material downward changes in the copper price, Pembridge will be in a position to finance its operations without requiring any additional financing to meet its current operational costs and those related to maintaining a public company.
To that end, on 7 January 2021 the Board of Directors approved the issuance and allotment of 14,250,000 new ordinary shares ("Subscription Shares") at price of 4.00p each ("Subscription Price"), raising gross proceeds of £570,000 ("Subscription"), and the issue of 308,793 further shares to satisfy a liability. The Subscription Shares been subscribed for by existing shareholders and Directors of the Company, which reflects the confidence of the subscribers to continue supporting the Company. Directors of the company participating in the subscription are as follows:
Director Subscriptions
|
Director |
Current Holding |
Subscription Shares |
% Holding following Subscription and Admission |
|
Gati Al-Jebouri |
15,418,754 |
3,000,000 |
20.7% |
|
Guy Le Bel |
2,823,545 |
250,000 |
3.5% |
Application to LSE
The Company intends to issue the Subscription Shares under its existing authorities and an application has been made to the London Stock Exchange for Subscription Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on the LSE. Dealings are expected to commence from 8.00 a.m. on 13 January 2021 ("Admission").
The Company's issued ordinary share capital following Admission will be 88,965,786 ordinary shares, which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:
"Although 2020 was a challenging year for us, as for many businesses, we have seen positive news from the Minto mine and expect to see much more in the coming year. However, Pembridge still needed funding, and this share issue is now expected to see the company safely into 2022, when its CAD $4 million of funding to Minto is expected to be repaid. The funds from this latest subscription will also provide us with the ability to actively evaluate and seek new investment opportunities for our Company."
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.
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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