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Pembridge Resources Signs Sumitomo Offtake For Newly-Bought Minto Mine

(Alliance News) - Pembridge Resources PLC on Monday said it has signed an offtake agreement with ...

Alliance News 22 July, 2019 | 12:33PM
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(Alliance News) - Pembridge Resources PLC on Monday said it has signed an offtake agreement with a subsidiary of Japan's Sumitomo Corp.

The agreement is with Sumitomo Canada Ltd, via Pembridge subsidiary Minto Explorations Ltd.

Sumitomo will take all of the copper concentrate produced at the Minto copper mine in Yukon, Canada, and this agreement will remain in place until the later of when 55,000 tonnes of copper concentrate has been received or the end of 2020.

Sumitomo will pay 90% of the price for the shipments a month in advance, with the rest due on delivery to Japan. This will allow Minto to "immediately" monetise each month's production, eliminating large capital requirements when the site cannot transport shipments due to seasonal weather changes.

Pembridge Chief Executive David Linsley said: "We are delighted to secure this agreement with Sumitomo Corp, a group that shares our vision for Minto and Pembridge. With their extensive copper market experience, entering into this is an important event for Pembridge and our shareholders.

"We look forward to developing a long-term relationship with our new partners as we seek to grow Pembridge through strategic acquisitions and development of the Minto copper belt."

Pembridge bought Minto in June, in a deal which will see it pay up to USD20 million to Capstone Mining Corp based on future cash flows. Previously, the deal was to be GBP37.5 million in cash as well as a 9.9% stake in Pembridge, but Pembridge could not close the equity part of the deal and changed the terms.

As the acquisition constituted a reverse takeover, Pembridge shares are currently suspended from trading.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Pembridge Resources PLC 1.28 GBX -1.92 -
Sumitomo Mitsui Financial Group Inc 4,056.00 JPY 2.45

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Alliance News

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