London, United Kingdom – Pembridge Resources plc (LSE: PERE) (“Pembridge” or the “Company”) is pleased to announce that further to the restart of operations on 15 October 2019 and first revenue of US$3.4m received on 6 November 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 (“Advanced Payment”) of US$3.7m for the copper concentrate produced during the month of November 2019 (“Second Revenue”).
Highlights
· 1,793 dry metric tonnes of concentrate was produced during November 2019
· Second Revenue received by Minto of US$3.7m from Sumitomo
· Sales includes content for copper, gold and silver in concentrate
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 November 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 Payments 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 Payments include precious metals credits and therefore Minto receives 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:
“This payment, for production in November 2019, is the second monthly Advanced Payment made to Minto from Sumitomo, bringing total payments received to over US$7.0m since Minto recommenced production 7 weeks ago. It proves the operation’s ability to generate steady cash flow as operations ramp up. It is the objective of Minto mine management, with the oversight from Pembridge, to ensure that production continues to grow while ensuring an efficient and cost-effective operation.”
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.
