The trading of Pembridge Resources’ shares (LSE: PERE) came to a halt on Thursday after the embattled miner said the board had decided to place the firm into creditors’ voluntary liquidation.
The company’s shares free fell this week after operations at Minto Metals’ (TSXV: MNTO) namesake copper-gold mine in the Yukon stopped. Pembridge owns an 11.2% stake in Minto Metals, and previously loaned the company about $2 million to double water treatment capacity at the operations’ two plants.
Pembridge noted the receivable from Minto was critical to its cash flow over the next 12 months as it represents over 90% of the company’s assets. Close to $250,000 were payable in instalments over the rest of 2023, it added.
Pembridge said it had engaged insolvency advisers and will call a meeting as soon as possible to formally resolve the firm’s voluntary wind up.
The company has around $350,000 of short-term liabilities and $126,000 in cash as of May 15.
The Yukon government has assumed care and control of the mine site, located within the Selkirk First Nation’s Territory.
Minto Metals also requested for the trading of its shares in Canada to be suspended on Monday. The board’s six members along with two vice-presidents resigned the next day.
The Minto mine had been in operation since 2007 and employed about 180 people.
Pembridge shares closed at 0.23 pence each on Wednesday, prior to their suspension on Thursday morning, and had lost almost 89% of their value year to date.
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