Pembridge Resources shares collapse on Minto mine halt

Shares in Pembridge Resources (LON: PERE) fell as much as 82% on Monday as it disclosed it was assessing its ability to stay […]
Aerial view of the Minto copper-gold-silver mine. (Image courtesy of Minto Metals.)

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Shares in Pembridge Resources (LON: PERE) fell as much as 82% on Monday as it disclosed it was assessing its ability to stay in business after Canada’s Minto Metals (CVE: MNTO), had to halt the namesake mine over the weekend.

The suspension of the Minto copper-gold-silver mine, in the Yukon Territory, means the Canadian firm is unlikely to be able to repay it about C$2 million ($1.5m), borrowed to double water treatment capacity at the operations’s two plants.

Minto Metals, in which Pembridge has a 11.2% stake,  said the Yukon Government had assumed care and control of the mine site, located within the Selkirk First Nation’s Territory.

Pembridge noted the receivable from Minto Metals was critical to its cash flow over the next 12 months as it represents over 90% of the company's assets. Close to C$250,000 ($185,000) were payable in instalments over the rest of 2023, it added.

Pembridge warned it has around $350,000 of short-term liabilities and $126,000 in cash as of Monday.

“As a result of this material uncertainty to the company, the board has no option but to carefully assess the financial viability of the company, consider delisting from the London Stock Exchange, as well as obtaining appropriate professional advice on the restructuring and insolvency options available,” chief executive Gate Al-Jebouri said.  

Pembridge stock was down almost 82% to 0.27p at midday London time.

Yukon Energy, Mines and Resources Minister John Streicker said in a statement the government had hired JDS Mining as the contractor to ensure environmental protection was maintained at the site.

Minto began operations in 2007 and has produced about 500 million pounds of copper since then.

THIS ARTICLE WAS WRITTEN FOR MINING.COM

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