Stock Market News
Pembridge acquires cash-generating Canadian copper mine
Pembridge Resources announced on Thursday that it has struck a deal agreement to acquire 100% of Canada-based copper miner, with an associated $50m fundraising.
The acquisition of 100% of Minto Explorations from Capstone Mining will be completed for a total consideration of $37.5m in cash and new ordinary shares in Pembridge, meaning Capstone will own 9.9% of Pembridge shares after the deal has closed.
Minto, which is located in Yukon territory, Canada and has a 10-year production history, will Pembridge said will establish it as a cash-generating copper producer.
Fully listed Pembridge, which last year changed its name from China Africa Resources, has suspended the listing of its ordinary shares with immediate effect as the acquisition constitutes a reverse takeover. In connection with the acquisition, the London-listed company will seek to raise approximately $50m to fund the acquisition price and working and resource development capital.
David Linsley, chief executive of Pembridge, said: "The acquisition of Minto represents a transformational opportunity for Pembridge and its shareholders. Minto fits perfectly with the company's stated goal to acquire a producing and profitable mining operation to which our team can add further value."
Capstone's existing plan for the mine supports annual production averaging 50,000 tonnes of high quality copper concentrate containing 18,000 tonnes of copper, with gold and silver as by-products, capable of generating positive EBITDA and cash flow over the next four years.
In 2017, the mine produced 16,332 tonnes of copper, 170,809 ounces of silver and 25,205 ounces of gold with Capstone estimating 19,000 tonnes of copper in 2018.
"We believe Minto is an exceptional opportunity with the potential to benefit not only our shareholders but also the local and wider community for many years to come. We look forward to engaging with and working closely alongside the Selkirk First Nation, the various local communities, the Yukon government and the substantial workforce at the mine," said Linsley.
The acquisition of 100% of Minto Explorations from Capstone Mining will be completed for a total consideration of $37.5m in cash and new ordinary shares in Pembridge, meaning Capstone will own 9.9% of Pembridge shares after the deal has closed.
Minto, which is located in Yukon territory, Canada and has a 10-year production history, will Pembridge said will establish it as a cash-generating copper producer.
Fully listed Pembridge, which last year changed its name from China Africa Resources, has suspended the listing of its ordinary shares with immediate effect as the acquisition constitutes a reverse takeover. In connection with the acquisition, the London-listed company will seek to raise approximately $50m to fund the acquisition price and working and resource development capital.
David Linsley, chief executive of Pembridge, said: "The acquisition of Minto represents a transformational opportunity for Pembridge and its shareholders. Minto fits perfectly with the company's stated goal to acquire a producing and profitable mining operation to which our team can add further value."
Capstone's existing plan for the mine supports annual production averaging 50,000 tonnes of high quality copper concentrate containing 18,000 tonnes of copper, with gold and silver as by-products, capable of generating positive EBITDA and cash flow over the next four years.
In 2017, the mine produced 16,332 tonnes of copper, 170,809 ounces of silver and 25,205 ounces of gold with Capstone estimating 19,000 tonnes of copper in 2018.
"We believe Minto is an exceptional opportunity with the potential to benefit not only our shareholders but also the local and wider community for many years to come. We look forward to engaging with and working closely alongside the Selkirk First Nation, the various local communities, the Yukon government and the substantial workforce at the mine," said Linsley.
Related share prices |
---|
Pembridge Resources (PERE) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price