(Alliance News) - Pembridge Resources PLC on Friday said unit Minto Explorations Ltd has secured an up to USD12.5 million prepayment funding facility with Sumitomo Canada Ltd.
Shares in Pembridge were up 22% at 3.95 pence in London in morning trading.
Sumitomo is Minto's copper concentrate off take agreement counterparty with the USD12.5 million being additional to the existing offtake agreement, under which Sumitomo makes an advance payment of 90% of the value of concentrate output per month.
Pembridge said the deal "represents a further development in Minto's relationship with Sumitomo." Minto Explorations operates the underground copper-gold-silver mine located in central Yukon, Canada.
Gati Al-Jebouri, Pembridge's chief executive & chair, said: "We are delighted to have developed our relationship with Sumitomo in this way. Such an arrangement had been under discussion for a year and it is a measure of the progress Minto has made in that time that Sumitomo has now committed to it. Such support and commitment from Sumitomo is important to Minto and will help the ongoing development of the mine."
By Anna Farley; annafarley@alliancenews.com
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