Pembridge Resources plc Offtake Financing with Japanese Trading House (8695Q)
June 11 2018 - 2:00AM
UK Regulatory
TIDMPERE
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.
11(th) 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
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END
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