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Pembridge Resources (PERE)

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Monday 11 June, 2018

Pembridge Resources

Offtake Financing with Japanese Trading House

RNS Number : 8695Q
Pembridge Resources plc
11 June 2018
 

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. 

 

11th June 2018

 

Announcement of Strategic Alliance and USD$30 million Offtake Financing Arrangement with a major global Japanese trading house

 

London, United Kingdom - Pembridge Resources plc (LSE:PERE) ("Pembridge" or the "Company"), is pleased to announce that it has signed definitive heads of terms with a leading global Japanese trading house (the "Agreement") to receive US$30 million in prepayment financing ("Financing") through an offtake agreement for125,000 tonnes of copper concentrate, subject to certain conditions (the "Offtake"), to be produced by the Minto mine ("Minto"). 

Key highlights of the Agreement

·     The Financing is comprised of a US$30 million prepayment facility that will be available immediately on closing of the Agreement;

·     The Offtake agreement allows the Company to sell concentrate from Minto at the mine gate thus eliminating the historically large working capital requirements when the site is unable to transport concentrate owing to seasonal weather conditions;

·     The Offtake 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 the earlier of i) 125,000 tonnes of copper concentrate delivered, and ii) December 31, 2021;

·     Both parties envision working together on the Company's planned development of the Minto site and developing the broader region; and

·     The Financing provides low cost capital to the Company and represents a significant portion of the funding required to complete the acquisition of Minto and the Company's value enhancing initiatives at the mine

 

David Linsley, Chief Executive Officer of Pembridge stated: "Securing this agreement with such a large and sophisticated mining investor is a validation of both the great potential we see in the Minto mine and our vision of growing Pembridge using the Minto Mine as a platform. The backing from a leading global Japanese trading house, with extensive copper market experience, is an important event for Pembridge and our shareholders as we approach the completion of the acquisition of Minto from Capstone.  We look forward to developing a long-term relationship with our new partners."

 

 

The Financing and Offtake is subject to, among other things, the satisfaction of certain customary conditions including the successful closing of the acquisition of the Minto mine from Capstone Mining Corp. and the execution of final definitive agreements. The person who arranged for the release of this announcement on behalf of the Company was David Linsley, Chief Executive Officer. 

ENDS

 

About Pembridge Resources plc

Pembridge is a mining-focused special purpose acquisition company admitted to listing on the standard segment of the Official List by the United Kingdom Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange plc

The Company's management is composed of a team of senior leaders with experience in various board and executive positions with a complementary mix of expertise in geology, engineering, project appraisal, and commercial development across a wide range of commodity groups and mining jurisdictions

About Minto  

Minto is an open pit and underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway.  The Minto Mine has been in continuous production since 2007 and is presently the only operating mine in Yukon territory.  In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began some 12 years ago.

 

Pembridge Resources plc: +44 20 7917 2968

David Linsley, Chief Executive Officer

Paul Fenby, Chief Financial Officer

Joint Brokers

GMP Securities - Canada: +1 416 367 8600

Michael Barman

Arden Partners - United Kingdom: +44 20 7614 5900

Paul Shackleton

Fraser Marshall 

Tim Dainton

 

 

 

 

SI Capital - United Kingdom: +44 14 8341 3500

Nick Emerson

Financial Public Relations

Tavistock Communications: +44 20 7920 3150

Jos Simson

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.
 
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