By Anthony O. Goriainoff

 

Pembridge Resources PLC said Tuesday that it has entered into a four-year offtake extension agreement with Sumitomo Corporation for processing and purchase of the copper concentrate produced at the Minto mine, in Canada.

In an offtake deal a buyer agrees to purchase all or a substantial portion of the producer's goods and as part of the deal Sumitomo agrees to purchase 100% of the copper concentrate produced at the mine for a further four years.

The London-listed mining company said that in conjunction with the off-take agreement Sumitomo--which has contracted through Sumitomo Canada Ltd--agreed to extend its debt facility to $17.5 million, repayable over 48 months.

"Sumitomo has been a tremendous business partner since the restart of the Minto Mine in 2019 and we look forward to continuing this relationship and providing Sumitomo with our high-grade, quality copper concentrate for an extended period of time", Chief Executive Christopher Stewart said.

Shares at 1100 GMT were up 0.25 pence, or 5.3%, at 5 pence.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

May 17, 2022 07:38 ET (11:38 GMT)

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