Pembridge Resources plc Minto Loan Repayment Received (4745E)

TIDMPERE

RNS Number : 4745E

Pembridge Resources plc

11 March 2022

11 March 2022

Pembridge Resources plc

Minto Makes the First of its CAD 4 Million Loan Repayments to Pembridge

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that Minto Metals Corp. ("Minto") has now made the first repayment of its loan from Pembridge. The Company lent a total of CAD 4 million to Minto, to fund Minto's surety account, during 2019 and 2020. The loan carries interest at 8% and is due to be repaid in full via quarterly instalments each of CAD 1 million during 2022, with the final interest payment in early 2023.

Minto has now paid CAD 500,000 (approx. GBP300,000) and confirmed it will pay a further CAD 500,000 before the end of March 2022.

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

"We are very pleased to have received CAD 500,000 from Minto, with a further CAD 500,000 expected to be paid to Pembridge before month's end. The CAD 4 million due this year (plus interest) represents the first of the peviously identified cash streams which Pembridge expects to receive from Minto.

Pembridge's proportional share of the overall project cashflows from the current mine life at Minto, based on operational assumptions set out in Minto's updated 43-101 Preliminary Economic Assessment Technical Report and our shareholding, are expected to be circa US$26M at a copper price US$3.75 per tonne. Given the current copper price of approximately US$4.50/lb and favourable outlook, coupled with the commencement of the recently announced drill program to expand mine life, the Company feels there is additional significant potential to this share of the overall project cashflows . These cashflows for the Company, which are dependent on the dividend policy of Minto, are expected to provide significant funding to advance any new projects that Pembridge invests in."

Cautionary Statement

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company's ability to predict or counteract the potential impact of COVID-19 coronavirus on factors relevant to the Company's business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

ENDS

NOTES TO EDITORS

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Metals Corp, a British Columbia incorporated business listed on the TSX Venture Exchange under the symbol "MNTO" that operates the Minto mine in Yukon, Canada.

About Minto Metals Corp

Minto Metals Corp operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired the Minto mine from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.

Enquiries:

Pembridge Resources plc: [phone]

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board

David James, Chief Financial Officer

   Tavira Securities - United Kingdom:                                             [phone] 

Jonathan Evans

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March 11, 2022 02:00 ET (07:00 GMT)