Pembridge Resources (LON:PERE ) said its subsidiary, Minto Explorations, has secured a prepayment funding facility with its copper concentrate offtake partner, Sumitomo Canada.
The mining firm, which holds 11% interest in the British Columbia incorporated business, said the pre-pay facility is up to $12.5m and is additional to the existing offtake agreement.
Sumitomo, which has offices in Calgary, Montreal, Toronto and Vancouver, makes an advance payment of 90% of the value of concentrate output each month. Pembridge added that the facility marks a “further development” in Minto’s relationship with Sumitomo.
Shares in Pembridge Resources have traded between 2.69p and 4.25p over the past month and were trading 15.38% higher at 3.75p this morning following the announcement.
"We are delighted to have developed our relationship with Sumitomo in this way,” said Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge.
He added, “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."
Pembridge acquired the Minto copper-gold-silver mine located in central Yukon in June 2019 from Capstone Mining Corp and recommenced operations in October 2019.
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