(Alliance News) - Pembridge Resources PLC has decided to appoint a third party to operate the Minto mine in Canada, it said on Tuesday.
Pembridge bought Minto Exploration Ltd via a GBP20 million reverse takeover in June 2019. Minto owns a copper-gold-silver mine of the same name in Yukon, Canada, where mining restarted in October.
The London-based company has now decided to appoint a third-party operator of the mine. Pembridge said this will not change its ownership of Minto, of which it has 100% of the voting rights and 33% of the economic benefit.
New York-based investor Copper Holdings LLC owns 33% of the Minto economic benefit, with Lion Point Capital-managed Cedro Holdings I LLC holding the remainder.
"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," said Pembridge Chief Executive & Chair Gati Al-Jebouri.
"It has become apparent 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," Al-Jebouri added.
Pembridge shares were 3.9% lower on Tuesday afternoon at a price of 14.90 pence each. Shares returned to the London market in December having been suspended for nearly two years due to the Minto deal.
By George Collard; georgecollard@alliancenews.com
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