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Pembridge shares soar as Minto secures prepayment funding
11th Sep 2020 16:16
(Sharecast News) - Pembridge Resources announced on Friday that Minto Explorations has secured a prepayment funding facility with Sumitomo Canada, which is also Minto's copper concentrate offtake agreement counterparty.
The London-listed firm, which has an investment in Minto, said the facility of up to $12.5m (£9.74m) was in addition to the existing offtake agreement, under which Sumitomo would make an advance payment of 90% of the value of concentrate output each month.
It said it also represented a further development in Minto's relationship with Sumitomo.
"We are delighted to have developed our relationship with Sumitomo in this way," said chief executive officer Gati Al-Jebouri.
"Such an arrangement had been under discussion for a year and it is a measure of the progress Minto has made in that time that Sumitomo has now committed to it.
"Such support and commitment from Sumitomo is important to Minto and will help the ongoing development of the mine."
At 1332 BST, shares in Pembridge Resources were up 20.62% at 3.92p.
The London-listed firm, which has an investment in Minto, said the facility of up to $12.5m (£9.74m) was in addition to the existing offtake agreement, under which Sumitomo would make an advance payment of 90% of the value of concentrate output each month.
It said it also represented a further development in Minto's relationship with Sumitomo.
"We are delighted to have developed our relationship with Sumitomo in this way," said chief executive officer Gati Al-Jebouri.
"Such an arrangement had been under discussion for a year and it is a measure of the progress Minto has made in that time that Sumitomo has now committed to it.
"Such support and commitment from Sumitomo is important to Minto and will help the ongoing development of the mine."
At 1332 BST, shares in Pembridge Resources were up 20.62% at 3.92p.