Capstone Mining Corp. agreed to sell its wholly owned Minto copper-gold mine in Canada's Yukon territory to Pembridge Resources PLC for up to US$20 million.

The company said June 3 that it entered into a definitive share purchase agreement, and the transaction is effective immediately.

"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," Capstone President and CEO Darren Pylot said in a statement.

Capstone put the mine on temporary care and maintenance after a previous deal with Pembridge fell through when the latter was unable to raise money for the purchase.

The company said it will use the proceeds of the sale to reduce outstanding debt under its credit facility.