(Alliance News) - Pembridge Resources PLC said Friday it has loaned GBP1.7 million to investee Minto Explorations Ltd to date, and will pay the rest in line with its funding obligations.
In mid-December, the mining firm said it would fund a GBP2.3 million loan to Minto, which operates the copper-gold-silver mine of the same name in Yukon, Canada.
The remaining GBP570,000 payment is expected to be made in the next 60 days. The entire loan is due to be repaid once Minto has paid back existing USD10 million loans provided by Copper Holdings LLC and Cedro Holdings LLC.
Also on Friday, Pembridge announced a new convertible loan worth up to GBP2.0 million with Chief Executive Gati Al-Jebouri.
The new facility, known as Facility C, will be used to fund possible new investment opportunities as well as for working capital needs. The facility carries interest at an annual rate of 8%.
Pembridge said it will look to gain a waiver from the Takeover Panel that would allow Al-Jebouri to own more than 30% of the company's shares. Obtaining this waiver is subject to gaining shareholder approval for the company to issue shares upon the conversion of the loan.
"The amount raised in the fourth quarter of 2019 and subsequently loaned to Minto has mitigated the risk of significant dilution at project level following relist. We will continue to work on developing the best operating strategy for Minto as we get more data back from the drilling and analysis of the MAG survey results," Al-Jebouri said.
"The Facility C funds will ensure we are in a position to commence and review any new acquisition opportunities as they arise and cover all our working capital needs for the foreseeable future," Al-Jebouri added.
Shares in Pembridge, which is based in London, were up 1.0% at 12.62 pence on Friday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.