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Pembridge Resources Amends Wheaton Contract, Could Add USD8.5 Million

Fri, 8th Nov 2019 15:42

(Alliance News) - Pembridge Resources PLC said Friday it has amended the precious metals streaming agreement with Minto Explorations Ltd and Wheaton Precious Metals Corp, which was originally singed in 2008.

The deal has been amended twice before, in 2009 then in 2017.

Pembridge bought Minto for GBP20 million in June, which owns an underground copper-gold-silver mine in central Yukon, Canada, in June and restarted mining there in October.

Under the new deal, the price received by Minto from Wheaton for gold will now be 75% of the quoted gold price on the London Bullion Market Association.

The new price will come into effect immediately, and will last until 11,000 ounces of gold has been delivered to Wheaton.

Assuming the market price for gold remains on average at USD1,500 per ounce, and Minto produces the 11,000 ounces, this deal could add about USD8.5 million in revenue, Pembridge said.

Under a separate offtake agreement between Minto and Japan's Sumitomo Canada Ltd, 90% of the payable gold contained within the copper concentrate produced at the Minto mine will continue to be paid in advance to Minto by Sumitomo on a monthly basis.

Minto produced 1,734 dry metric tonnes of concentrate in October, which was then sold to Sumitomo.

Pembridge Chair & Chief Executive Gati Al-Jebouri said: "The support from Wheaton should significantly assist Minto's cash flow as the Minto mine ramps up production."

Pembridge shares are still suspended, as the Minto deal was considered a reverse takeover. They have been suspended since February 2018.

Separately, Pembridge said it has issued former CEO David Linsley 2.4 million shares, to cover amount owed to him.

He was replaced by former deputy minister of Energy for Bulgaria Gati Al-Jebouri in September.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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