Pembridge Resources amends gold sales agreement with Wheaton Precious Metals
StockMarketWire.com - Pembridge Resources said it had amended an agreement between its Canadian mine subsidiary Minto and Wheaton Precious Metals that would see it receive a higher percentage of the gold market price for its product.
For a modified price period, the price received by Minto from Wheaton for payable gold would increase to 75% of the market price.
The modified price was effective immediately and would end on the earlier of 12 months plus 60 days from first delivery, or the first 11,000 ounces of gold having been delivered by Minto.
'The support from Wheaton should significantly assist Minto's cash flow as the Minto mine ramps up production,' chief executive Gati Al-Jebouri said.
'Assuming that the market price for gold remains on average $1,500 per ounce and that Minto produces 11,000 ounces of payable gold, this deal could benefit Minto's revenue by up to approximately $8.5m during the modified price period.'
Story provided by StockMarketWire.com