REG - Pembridge Resources - Loan Repayment and Investment

Pembridge ResourcesAnnouncement

29/03/2022 07:00

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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 £25,000
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 £25,000 in Vulcan as part of
Vulcan's capital raise of £500,000, representing just under 1% of Vulcan's
share capital.  Pembridge has now invested a further £25,000 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 £250,000;

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 £500,000
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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