Yukon-based Minto Explorations will go public on the TSX-V by way of a reverse takeover, London-listed Pembridge Resources has announced.
Pembridge, which acquired Minto in 2019, said this week that Minto Explorations would be renamed Minto Metals.
The company would seek to raise C$45-million in new capital, with an option to increase the offering by up to C$6.75-million.
“This go-public reverse takeover represents the next chapter in the Minto story and an opportunity for new investors to get involved in a growing business,” Pembridge CEO and chairperson Gati Al-Jebouri said in a statement.
At current copper prices, the economic model prepared as part of the NI 43-101 preliminary economic assessment supported an expected market capitalisation of Minto Metals of more than C$200-million after the capital raise, he pointed out.
“Good progress has already been made at Minto and the reverse takeover and associated Minto capital raise will help achieve the further expansion of the mine life, thus revealing the full value of the mine.
“I strongly believe having 100% of the Minto mine listed on a public exchange should help remove the current disconnect between the Pembridge share price and the materially higher underlying value of Minto,” Al-Jebouri said.
Minto restarted operations in October 2019 and has demonstrated that the mine is commercially viable.
The private placement is expected to close in July 2021 and the reverse takeover is expected to be completed in the third quarter of 2021.
Pembridge said it intended to participate in the placement with the aim of attaining an equity ownership in PublicCo of about 11%, in line with its current economic interest in Minto.