YUKON – Vancouver-based Capstone Mining has agreed to sell its Minto copper-gold mine 240 km northwest of Whitehorse to Pembridge Resources plc of London, U.K. Capstone started production at the mine in 2007.
The Minto copper-gold mine in Yukon has several active pits as well as additional pit and underground potential. (Image: Capstone Mining)
Pembridge will pay US$37.5 million in cash plus working capital adjustments. Capstone will also receive common shares representing 9.9% of Pembridge when the deal closes.
Pembridge, currently a shell company, will become a copper and gold producer with cash flow as soon as the deal closes. The current mining plan calls for annual production of about 50,000 tonnes of copper in concentrate plus gold and silver as by-products. The property has significant exploration potential with multiple open pit and underground targets. As of January 2018, the mine has proven and probable reserves of 3.9 million tonnes grading 1.67% copper and 0.41 g/t gold.
The transaction is subject to closing conditions, including the requirement for Pembridge to post the required financial security with respect to the Minto closure bond. Capstone has agreed, for one year after closing, to retain one-third (approximately C$24 million) of the existing surety bond if requested by Pembridge, after which time Capstone will have no further obligation with respect to the closure of the Minto mine.
Learn more about the new owner of the Minto mine at www.PembridgeResources.com.