YUKON – Vancouver-based Capstone Mining
and Pembridge Resources
have terminated their agreement for the sale of the Minto copper-gold mine 240 km northwest of Whitehorse.
[caption id="attachment_1003725171" align="alignright" width="248"] The Minto copper-gold mine in Yukon has been placed on temporary care and maintenance as Capstone seeks a buyer. (Image: Capstone Mining)
Capstone had agreed to sell the Minto operation to Pembridge last February, putting a price tag of US$37.5 million on the mine and mill. Unfavourable equity markets have left Pembridge without financing for the acquisition.
To preserve the value of the Minto mine, Capstone has put it on temporary care and maintenance. Mining has ceased and the mill will run a few more weeks until the current stockpile is processed. Cost of putting the mine on care and maintenance are estimated to be US$5 million in both 2018 and 2019. Thereafter, the annual cost will drop to US$4 million.
Capstone will maintain a core team to oversee the mine site and perform environmental monitoring. Approximately 200 jobs will be lost. Meanwhile the company will continue to search for a buyer.
For more information about the Minto mine, please see www.CapstoneMining.com.