Capstone Mining Corp. (TSX: CS) has entered into a definitive share purchase agreement (the pursuant to which it has agreed to sell its Minto Mine to Pembridge Resources plc (LON: PERE). Under the terms of the Agreement, Capstone will receive US$37.5 million in cash, plus working capital adjustments, and common shares representing 9.9% of the issued and outstanding shares of Pembridge upon completion of the Transaction.
“The divestiture of Minto will allow us to focus our resources on opportunities that will have a more meaningful impact on the long-term growth of the company,” said Darren Pylot, President and Chief Executive Officer of Capstone. “This agreement is consistent with our continuing efforts to deliver shareholder value by focusing on our core assets and allows us to further strengthen our balance sheet. Minto has been an important part of the development of Capstone and we are optimistic for the future of Minto under Pembridge’s stewardship.”
The Transaction is subject to closing conditions, including the requirement for Pembridge to post the required financial security with respect to the closure bonding requirements at Minto. Capstone has agreed, for a period of one year post-closing, to retain one-third (approximately Cdn$24 million) of the existing surety bond if requested by Pembridge, after which time Capstone will have no further obligation with respect to the closure of the Minto Mine.
The Transaction is expected to close in the second quarter of 2018. Capstone intends to use net proceeds from the sale primarily to reduce outstanding borrowings under its revolving credit facility.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in Region III, Chile, in partnership with Korea Resources Corporation, as well as exploration properties in Chile. Capstone’s strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange.
On December 23, 2005, Canadian Securities Administrators (CSA) ad... READ MORE
Kutcho project, exploration camp &nbs... READ MORE
The Trump Administration is at it again. On July 18 the fi... READ MORE
Rockcliff Metals Corporation (TSX-V: RCLF) (FRANKFURT: RO0) (WKN:... READ MORE
Further to the press release of Jayden Resources Inc. dated Augus... READ MORE