Pembridge Resources PLC (LON:PERE) will renegotiate its acquisition terms for the Minto copper-gold-silver mine in the Yukon with Capstone Mining Corporation as a result of “increasingly difficult” market conditions.
The company said that since securing US$30mln to finance the purchase of Minto in June, market conditions had made it more difficult to close the equity financing element of the deal “on terms that would be favourable to all concerned parties”.
Following the decision to renegotiate the terms, Capstone would implement a phased care and maintenance programme at the site until the acquisition was completed, which would result in a halt in production.
Capstone would then maintain the mine in a safe and stable condition while Pembridge prepared a revised offer for the site.
David Linsley, chief executive of Pembridge, said that the equity and commodity markets had been “extremely challenging” during the acquisition process, adding that the commitments for the “significant majority” of the financing were still in place and an amended agreement would be reached “in the near future”.