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Capstone Mining Reaches Agreement to Sell Minto Mine
Capstone Mining Reaches Agreement to Sell Minto Mine Canada NewsWire VANCOUVER, ...
About this update from Capstone Copper Corp.
[{"type":"text","content":"\n\n\n\nCapstone Mining Reaches Agreement to Sell Minto Mine\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Feb. 14, 2018\n\n\n\nVANCOUVER, Feb. 14, 2018 /CNW/ - Capstone Mining Corp. (\"Capstone\" or the \"Company\") (TSX: CS) has entered into a definitive share purchase agreement (the \"Agreement\") pursuant to which it has agreed to sell its Minto Mine to Pembridge Resources plc (\"Pembridge\") (LON: PERE) (the \"Transaction\"). 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.    \n\n\"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.\"  \n\nThe 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.    \n\nThe 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.  \n\nAbout Capstone Mining Corp.Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committe...