Pembridge Resources PLC (LON:PERE) shares rose on Friday after the group said its subsidiary, Minto Explorations Limited, has secured a prepayment funding facility with its copper concentrate offtake partner, Sumitomo Canada Limited.
The company said the pre-pay facility of up to US$12.5mln is additional to Minto’s existing offtake agreement, under which Sumitomo makes an advance payment of 90% of the value of concentrate output each month, with Pembridge noting that the facility represents a “further development” in Minto’s relationship with Sumitomo.
“We are delighted to have developed our relationship with Sumitomo in this way. 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 chief executive and chairman Gati Al-Jebouri said in a statement.
Minto operates an underground copper-gold-silver mine located in central Yukon in Canada and was acquired by Pembridge in June 2019 and restarted operations in October last year.
Shares in Pembridge jumped 3.9% to 3.4p in early deals on Friday.