Pembridge Resources in trading halt as it seeks liquidation

YUKON | Halted Minto copper mine made up 90% of London-based firm’s assets

BY CECILIA JAMASMIE

Shares in Pembridge Resources

(LSE: PERE) were suspended from trading on May 18 after the embattled miner said the board had decided to place the firm into creditors’ voluntary liquidation. The company, whose shares free fell in mid-May after operations at Minto Metals’ (TSXV: MNTO) namesake copper-gold mine in the

Yukon stopped. Pembridge owns an 11.2% stake in Minto Metals, and previously loaned the company about $2 million to double water treatment capacity at the operations’ two plants.

Pembridge noted the receivable from Minto was critical to its cash flow over the next 12 months as it represents over 90% of the company’s assets. Close to $250,000 were payable in instalments over the rest of 2023, it added.

Pembridge said it had engaged insolvency advisers and will call a meeting as soon as possible to formally resolve the firm’s voluntary wind up.

The company has approximately $350,000 of short-term liabilities and $126,000 in cash as of May 15.

The Yukon government has assumed care and control of the mine site, located within the Selkirk

First Nation’s territory.

Yukon Energy, Mines and Resources Minister John Streicker said in a statement the government had hired JDS Mining to ensure environmental protection was maintained at the site.

Minto Metals also requested that trading of its shares in Canada be suspended on May 15. The board’s six members along with two vice-presidents resigned the next day.

The Minto mine, located about 250 km north of Whitehorse, had produced around 500 million lb. of copper since operations began in 2007. It employed about 180 people. Pembridge shares closed at 23¢ each on May 17, prior to their suspension the following day and had lost almost 89% of their value year to date. TNM