Business
Capstone Mining Sells Minto Mine For Up To US$20 Million
Capstone Mining Sells Minto Mine For Up To US$20 Million Canada NewsWire VANCOUV...
About this update from Capstone Copper Corp.
[{"type":"text","content":"\n\n\n\nCapstone Mining Sells Minto Mine For Up To US$20 Million\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, June 3, 2019\n\n\n\nVANCOUVER, June 3, 2019 /CNW/ - Capstone Mining Corp. (\"Capstone\") (TSX:CS) announced it has entered into a definitive share purchase agreement (the \"Agreement\") to sell its 100% interest in the Minto mine (\"Minto\" or the \"Mine\") to Pembridge Resources PLC (\"Pembridge\") (LON:PERE) (the \"Transaction\"). Under the terms of the Agreement, Capstone will receive up to US$20 million in cash (the \"Purchase Price\"), in staged payments. The Transaction closed simultaneously with the signing of the Agreement and is effective immediately.\n\"The sale of the Minto mine is very good news all around. Capstone will no longer incur the expense of having the mine on care and maintenance, and the recommencement of operations will be positive for Minto employees, contractors and the local economy,\" said Darren Pylot, President & CEO of Capstone. \"Completing Minto's divestiture allows Capstone's management to focus on our core operations, which includes completing the strategic process for Santo Domingo.\"\nThe Transaction requires Pembridge to pay Capstone as follows:\nUS$5 million within 60 days of reaching commercial production;   US$5 million within 90 days, following two consecutive quarters of commercial production in which the average London Metals Exchange Cash Copper Bid Price (\"Average LME Price\") is greater than US$3.00 per pound within the three years following commercial production; and US$10 million, within 90 days following two consecutive quarters of commercial production in which the Average LME Price is greater than US$3.50 per pound within the three years following commercial production.As a result of the Transaction, Capstone will derecognize an approximate US$24 million asset retirement obligation in its financial statements this quarter; and will recognize an accounting charge of approximately US$20 million to US$30 million due primarily to the reversal of non-cash, cumulative transl...