Pembridge Resources (LON:PERE) said Thursday it was buying Capstone Mining’s (TSX:CS) Minto copper-gold-silver mine in Canada’s Yukon for $37.5 million in cash plus a 9.9% stake in the company.
The miner, which last year moved from the AIM to LSE main board, said the acquisition makes of Pembridge a cash flow generating copper producer.
The London-based company said it plans to raise $50 million via an equity placement. The money will be used to fund the proposed acquisition and provide resource development and working capital, it said.
Pembridge is currently working with several potential capital providers and reviewing its funding options. Minto is located in the mining friendly Yukon Territory and has a 10-year production history with all key infrastructure, facilities, and operating teams in place.
“We believe Minto is an exceptional opportunity with the potential to benefit not only our shareholders but also the local and wider community for many years to come,” Pembridge chief executive officer, David Linsley, said in the statement.
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