An acquisition vehicle that has been turning its attentions towards copper production has signed an off-take agreement with a major international firm, solidifying its new status as a producer.
Pembridge Resources announced in a statement this week that it has entered into an off-take financing agreement for its Minto mine.
Under the deal, which is valued at $30mn, 125,000 tonnes of copper concentrate produced at the mine will be sold and exported to a nominated Japanese port. The international firm has not been disclosed.
The offtake is for 100% of the copper concentrate produced at the Minto mine delivered on a cost, insurance and freight basis and shall remain in place until the earlier of either 125,000 tonnes of copper concentrate is delivered, or 31 December 2021.
"Securing this agreement with such a large and sophisticated mining investor is a validation of both the great potential we see in the Minto mine and our vision of growing Pembridge using the Minto mine as a platform,” said David Linsley, chief executive of Pembridge.
“The backing from a leading global Japanese trading house, with extensive copper market experience, is an important event for Pembridge and our shareholders as we approach the completion of the acquisition of Minto from Capstone. We look forward to developing a long-term relationship with our new partners."
Pembridge acquired Minto Explorations in February 2018 and such acquired the Minto mine into its portfolio.
The mine is an open pit and underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. Minto has been in continuous production since 2007 and is presently the only operating mine in Yukon territory.
In 2017, the open pit mine produced 16,332 tonnes of copper, 170,809 ounces of silver and 25,205 ounces of gold.