1 Jul 2020 07:00
1 July 2020
Amendment to Shareholders Agreement Executed
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") signs Amendment to Minto Explorations Ltd. ("Minto") Shareholders Agreement on 30 June 2020 to remove direct ongoing Pembridge financial commitments of US $6.4M and up to US $22.1M and for Minto to issue new shares in Minto to the value of US $3 million resulting in dilution of Pembridge interest in Minto from 33% to 11%.
The Company is pleased to announce that the agreement to restructure interests in Minto between its investors, previously announced on 6th April 2020, has been finalised and executed. The final agreement remains as described on 6th April and provides Minto with US $3M of cash investment to support its current cash requirements. This also assists Pembridge's liquidity in the current unprecedented market conditions by relieving the Company of significant future financial obligations amounting to US $6.4M and up to US $22.1M.
As a result of the new investment into Minto by the other shareholders, Pembridge's economic interest in Minto will be reduced from 33% to 11%. In accordance with the Shareholders Agreement signed at the time of the Minto acquisition, all land staked by Pembridge has now been transferred to Minto Explorations Ltd.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:
"I am pleased that the restructuring of our financial obligations is finally in place and that Minto will receive a capital inflow of US $3M to support the financial position of Minto. This helps both Minto and Pembridge to maintain operations despite the challenges caused by Covid-19. Unfortunately, Pembridge's economic interest in Minto has been diluted from 33% to 11%, but we will maintain 11% of an operating copper business."
ENDS
NOTES TO EDITORS
About Pembridge Resources plc
Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.
Enquiries:
Pembridge Resources plc: +44 (0)20 7917 2968
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board
David James, Chief Financial Officer
Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016
Jonathan Evans