Pembridge Resources PLC (LON:PERE) said an operator arrangement in relation to the Minto mine in the Yukon in Canada has been terminated as of January 1, 2021.
The company said in January last year the Minto board, in agreement with the Joint Advisory Committee (JAC) which represents the combined ownership interests of Pembridge, Cedro Holdings and Copper Holdings in Minto Explorations Ltd, appointed a third party, Minto Management Ltd, as an operator under a contract with Minto. The operator acted as the advisor to the mine’s general manager and provided direction to senior members of staff on day-to-day matters and has helped Minto to develop its operations.
READ: Pembridge Resources makes third copper concentrate shipment from Minto mine
However, Pembridge said the board and JAC now feel it is desirable to consolidate management expertise into Minto Explorations Ltd itself rather than continuing with the third-party operator, and as such the relationship has now been terminated.
The company added that as of January 5 the Yukon government has approved Minto’s plans for alternative self-isolation, which means its staff will no longer be required to quarantine for 14 days in the provincial capital of Whitehorse prior to commencing their shift at the mine. Pembridge said this development will have a “positive impact” on both costs and operational efficiency at Minto.
“The operator has played an important part in helping the Minto team towards its achievements so far in the year, which included sending three concentrate shipments to its customer in Japan and opening up the Copper Keel mining area. However, this was a transitional role, and it is now time for Minto to move forward under its in-house management expertise”, Pembridge chief executive and chairman Gati Al-Jebouri said in a statement.
“The support of the Yukon government has been continuous during these difficult times and the latest approval of the alternative self-isolation plan is an important additional step in supporting our mining operations, for which the Minto management and investors are grateful”, he added.
Shares in Pembridge surged 13.3% to 6p in late-afternoon trading on Thursday.