Third Payment of US$5.4m

RNS Number : 3632Z

Pembridge Resources plc

10 January 2020

 

Pembridge Resources plc (LSE:PERE) 

10 January 2020

Minto Receives Third Revenue Payment of US$5.4m

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that further to the first revenue received on 06 November 2019 and second revenue received 04 December 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$5.4m for the copper concentrate produced during the month of December 2019 ("Third Revenue").

Highlights

·    2,919 dry metric tonnes of concentrate was produced during December 2019, of which 2,680 dry metric tonnes is attributed to the Advanced Payment

·    Third Revenue received by Minto of US$5.4m from Sumitomo

·    Sales includes content for copper, gold and silver in concentrate

·    A total of US$12.5m in payments have been received under 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 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 of the copper concentrate to the Skagway port is expected to commence in early Q1 2020, followed by first shipment targeted for later in 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.

Going forward, disclosures on monthly production data will be made on a quarterly basis.

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge stated: 

"This payment, for production in December 2019, brings total payments received to US$12.5m since Minto recommenced production in October. The December payment was a significant improvement on last month's due to the head grade improvements in the Minto East mining area, as announced 09 January 2020, as well as a stronger copper and gold price."

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. 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:                                                              [phone]

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:                                       [phone]

Jonathan Evans

SI Capital - United Kingdom:                                                          [phone]

Nick Emerson

 

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