6 Nov 2019 07:00
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
6 November 2019
Minto Receives First Revenue
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that further to the restart of operations announced on 15 October 2019, pursuant to the offtake agreement between Sumitomo Canada Limited ("Sumitomo") and Minto Explorations Ltd ("Minto") dated 22 July 2019 (the "Offtake Agreement"), Minto has received a 90% provisional payment for the copper concentrate ("Advanced Payment") produced for the month of October 2019 ("First Revenue").
Highlights
·; 1,734 dry metric tonnes of concentrate was produced during October 2019
·; First Revenue received by Minto of US$3.4m from Sumitomo
·; Sales includes content for copper, gold and silver in concentrate
·; Revenue from future provisional payments will continue to be received monthly per the terms of the Offtake Agreement
Under the terms of the Offtake Agreement, an Advanced Payment has been made by Sumitomo to Minto for 90% of the estimated value of concentrate produced at the Minto mine during the month of October 2019. The final, balancing payment ("Final Invoice") will be paid on delivery to Japan, subject to the quotation period as per the terms of the Offtake Agreement. The Final Invoice will consist of the remaining 10%, plus or minus any commodity price changes to the Advanced Payment made, less accrued interest. Transportation and shipping of the copper concentrate is expected to commence in early Q1 2020.
In addition to the copper revenue, the Advance Payment includes precious metals credits and therefore Minto will receive 90% of the revenue from the copper, gold and silver due under the terms of the Offtake Agreement.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge stated:
"We expect Minto's revenue to grow steadily as Minto progresses through its ramps up phase. The Offtake Agreement with Sumitomo is an important element in supporting Minto's operations during this time. We thank Sumitomo for their support and the strong partnership between our two companies will be the basis for the future development of Minto."
ENDS
The person who arranged for the release of this announcement on behalf of the Company was Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board.
NOTES TO EDITORS
About Pembridge Resources plc
Pembridge is a mining company that is currently suspended from listing 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. Minto, a subsidiary of Pembridge, is a British Columbia incorporated business operating the Minto mine in Yukon, Canada.
About Minto Explorations Limited
Minto operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired Minto from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.
Enquiries:
Pembridge Resources plc: +44 (0)20 7917 2968
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board
Paul Fenby, Chief Financial Officer
Thomas Horton, Vice President Corporate Development
Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016
Jonathan Evans
SI Capital - United Kingdom: +44 (0)14 8341 3500
Nick Emerson
Tavistock Communications - United Kingdom: +44 (0)20 7920 3150
Charles Vivian
Gareth Tredway