(Alliance News) - Pembridge Resources PLC on Monday said it plans to raise up to GBP2.0 million through both a long-term convertible loan and a share placing once its stock is readmitted to main market trading.
Pembridge said GBP1.0 million will be raised through the proposed share placing and GBP1.0 million through the convertible loan. The company added that Non-Executive Directors Francis McAllister and Guy Le Bel intended to invest up to GBP100,000 in the placing.
The mining exploration and evaluation company's shares have been suspended since February 2018 after it agreed to acquire Minto Explorations Ltd from Capstone Mining Corp.
Since the transaction constituted a reverse takeover as per listing rules, Pembridge requested that the UK Financial Conduct Authority suspend the trading of its shares.
Turning to its interim results, the company posted a widened pretax loss to USD2.9 million from USD2.2 million, solely attributed to a rise in expenses.
In July, Pembridge announced that it sealed an offtake agreement for the Minto Mine, Canada, with a subsidiary of Japanese firm Sumitomo Corp.
The deal will see Sumitomo Canada Ltd take all of the copper concentrate produced at the Minto copper mine and the agreement will remain in place until the later of when 55,000 tonnes of copper concentrate has been received or the end of 2020.
Chief Executive and Chair Gati Al-Jebouri said: "These interim financial statements set out the position of our company less than one month after the finalisation of what is a transformational acquisition for our company going forward. The close of the transaction took a long period of time, mainly due to the difficult market conditions prevailing during the negotiations.
"The resilience of the team to bring to a successful end the acquisition is proof of their hard work ethics and commitment to the company, something on which I will be relying to ensure the future growth both of the operations at the Minto Mine as well as further afield. Shareholders have been patient during this period and I recognise that going forward we must aim not to repeat such a long period of suspension of our shares."
By Eric Cunha; ericcunha@alliancenews.com
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