- Pembridge Resources, a mining-focused special purpose acquisition company, has agreed to acquire 100% of Minto Explorations from Capstone Mining.

The consideration is comprised of US$37.5 million in cash plus new ordinary shares of 1p each in the capital of Pembridge, such that Capstone will own 9.9% of the issued ordinary share capital of Pembridge.

The acquisition constitutes a reverse takeover for the purposes of the listing rules, and accordingly the company has requested the FCA suspend the listing of Pembridge's ordinary shares with immediate effect.

Pembridge said the acquisition of Minto establishes it as a cash flow generating copper producer.

Minto is located in the Yukon territory in Canada and has a 10 year production history.

The current Capstone plan supports annual production averaging approximately 50,000 tonnes of highly 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.

Pembridge management have identified several near-term initiatives with the potential to significantly extend mine life, enhance mine economics and improve margins.

Pembridge will undertake a financing to raise approximately US$50 million in connection with the acquisition.

David Linsley, chief executive officer of Pembridge, stated: "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. This acquisition will represent a core asset to Pembridge and will be used as a platform for future growth."

At 8:02am: [LON:PERE] Pembridge Resources Plc share price was 0p at 1.28p

Story provided by