TIDMPERE
RNS Number : 3039G
Pembridge Resources plc
29 March 2022
29 March 2022
Pembridge Resources plc
Minto Completes the First of its Quarterly Loan Repayments to
Pembridge and Pembridge Invests in Vulcan Green Copper Limited
London, United Kingdom - Pembridge Resources plc (LSE: PERE)
("Pembridge" or the "Company") is pleased to announce that Minto
Metals Corp. ("Minto") has now completed the first CAD 1 million
repayment of its loan from Pembridge with a second payment of CAD
500,000, and that Pembridge has made a GBP25,000 investment in
Vulcan Green Copper Limited ("Vulcan").
Minto loan repayment
The Company lent a total of CAD 4 million to Minto, to fund
Minto's surety account, during 2019 and 2020. The loan carries
interest at 8% and is due to be repaid in full via quarterly
instalments each of CAD 1 million during 2022, with the final
interest payment in early 2023.
As announced on 11 March 2022, the first CAD 1 million due was
repaid with a first repayment of CAD 500,000 and now the second CAD
500,000 has been received by the Company.
Investment in Vulcan Green Copper Limited
During 2021, Pembridge made an investment of GBP25,000 in Vulcan
as part of Vulcan's capital raise of GBP500,000, representing just
under 1% of Vulcan's share capital. Pembridge has now invested a
further GBP25,000 in a convertible loan note with Vulcan. The loan
carries interest at 12% at and will convert automatically to shares
on the earlier of the following events:
1. Vulcan does a single funding raising of more than GBP250,000;
2. Vulcan does an Initial Public Offering ("IPO") on the London
Stock Exchange or an equivalent admission to any other recognised
investment exchange;
3. On a change of control of Vulcan; or
4. Three years after issuance of the note.
Under the first three scenarios, Pembridge will be able to
convert its loan into shares at a discount of 50% to the price set
in the triggering transaction. Under the fourth scenario, the
conversion price would be 1p per share, which represents a 90%
discount to the pricing of the 2021 GBP500,000 capital raise.
About Vulcan Green Copper
Vulcan's principal asset is the Kitumba Copper project (the
"Project") in the Mumbwa District in Central Province, Zambia,
approximately 450 km south-west of the traditional Copperbelt (by
road). A Project mining licence was issued in Nov 2014 and, under
its terms, is valid to 2039. Vulcan has confirmed to the Company
that, in aggregate, US$35m was invested into the Project from 2004
to 2018 by BHP, Blackthorn Resources, Glencore and Intrepid Mines
Limited. Whilst the mining licence has been subject to some dispute
since January 2020, Pembridge has been advised by Vulcan of its
expectation that this dispute will be satisfactorily addressed in
the near term, enabling the development of the Project. However,
there can be no assurance that this will be the case.
An independent JORC-compliant mineral resource by MSA was
published in 2015 showing a Total resource of 27.9 Mt @ 2.2 % Cu
(610,000 tonnes of contained Cu) using a 1% Cu cut-off grade,
including a Measured and Indicated resource of 24.9 Mt @ 2.3 % Cu
(580,000 tonnes of contained Cu) using a 1% Cu cut-off grade.
Following the completion of a Pre-Feasibility Study (PFS) and
subsequent Optimized PFS (OPFS) by Lycopodium, SNC Lavalin &
Coffey Mining indicated a possible production profile of 1.5 Mt/a -
2 Mt/a over a 13-year LOM. A further four additional exploration
licences are held by Vulcan in the wider project area.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board of Pembridge said:
"We are very pleased to have received this second instalment of
CAD 500,000 from Minto . These funds, coupled with the remaining
expected CAD 3 million to be received before the year end, ensure
the Company is in a position to meet all of its expenses for the
foreseeable future as well as assist in funding Pembridge's new
investments.
Pembridge's investment into Vulcan is the first time the Company
has looked to expand its asset base beyond Minto. Whilst this
particular investment is small, we believe the opportunity to
invest in Vulcan at the current valuation, with a JORC resource of
circa 600,000 tonnes of contained copper with additional resource
upside, has the potential to offer sizeable returns to Pembridge.
With expected further cashflows from Minto's production, beyond the
CAD 4 million surety account repayments, Pembridge is continuing to
review other projects where it is envisaged it will take a more
material stake, either at the asset level or in the operator.
Updates will be provided as appropriate.
Cautionary Statement
This News Release includes certain "forward-looking statements"
which are not comprised of historical facts. Forward-looking
statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company, or management, expects a stated condition
or result to occur. Forward-looking statements may be identified by
such terms as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will", or "plan". Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information.
Forward-looking information in this news release includes, but is
not limited to, the Company's intentions regarding its objectives,
goals or future plans and statements. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, the Company's ability
to predict or counteract the potential impact of COVID-19
coronavirus on factors relevant to the Company's business, failure
to identify additional mineral resources, failure to convert
estimated mineral resources to reserves with more advanced studies,
the inability to eventually complete a feasibility study which
could support a production decision, the preliminary nature of
metallurgical test results may not be representative of the deposit
as a whole, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, and those risks set out in the Company's public
documents. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
ENDS
NOTES TO EDITORS
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.
Pembridge has an investment in Minto Metals Corp, a British
Columbia incorporated business listed on the TSX Venture Exchange
under the symbol "MNTO" that operates the Minto mine in Yukon,
Canada.
About Minto Metals Corp
Minto Metals Corp 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
the Minto mine from Capstone Mining Corporation in June 2019 and
restarted operations in October 2019.
Enquiries:
Pembridge Resources plc: +44 (0) 7905 125740
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board
David James, Chief Financial Officer
Tavira Securities - United Kingdom: +44 (0)20 7100 5100
Jonathan Evans
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END
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