Pembridge Resources PLC (LON:PERE) has revealed that the amendment to the shareholders agreement to restructure interests between the investors in Minto Explorations Ltd. has now been finalised and executed.
The group said the final agreement, signed on June 30, 2020, remains as described on April 6, 2020, and provides Minto with US$3mln of cash investment to support its current cash requirements.
This also assists Pembridge's liquidity in the current unprecedented market conditions by relieving the company of significant future financial obligations amounting to US$6.4mln and up to US$22.1mln.
As a result of the new investment into Minto by the other shareholders, Pembridge's economic interest in Minto will be reduced to 11% from 33%. In accordance with the shareholders agreement signed at the time of the Minto acquisition, all land staked by Pembridge has now been transferred to Minto Explorations.
Gati Al-Jebouri, Pembridge’s chief executive officer and chairman commented: "I am pleased that the restructuring of our financial obligations is finally in place and that Minto will receive a capital inflow of US $3mln to support the financial position of Minto.
“This helps both Minto and Pembridge to maintain operations despite the challenges caused by Covid-19. Unfortunately, Pembridge's economic interest in Minto has been diluted from 33% to 11%, but we will maintain 11% of an operating copper business."