Rambler Metals & Mining Plc

Rambler Metals & Mining Plc

March 04, 2010 08:01 ET

Rambler Metals & Mining US$20M Gold Sale Agreement With Sandstorm Resources

LONDON, UNITED KINGDOM--(Marketwire - March 4, 2010) - Rambler Metals & Mining PLC ('Rambler'), (TSX VENTURE:RAB), (AIM:RMM) is pleased to announce that it has entered into an agreement with Sandstorm Resources Ltd. (TSX VENTURE:SSL) to sell a portion of the life‐of‐mine gold production from its Ming Copper‐Gold Mine, located in Baie Verte, Newfoundland.

Under the terms of the agreement Sandstorm Resources will make staged upfront cash payments for the gold to Rambler totalling US$20M. The 'First Deposit' of US$5M is available to Rambler immediately. The 'Second Deposit' of US$2M is available to Rambler upon completion and delivery to Sandstorm Resources of a satisfactory NI43‐101 Feasibility Study, which Rambler anticipates completing in 2Q 2010. The 'Third Deposit' of US$13M is available to Rambler upon award of all necessary permits for the Ming Mine anticipated in 3Q 2010. In return, Sandstorm Resources will be entitled to 25% of the first 175,000 ounces of payable gold and thereafter 12% of all payable gold produced from the Ming Mine. The initial term of the agreement is for 40 years and is renewable thereafter by Sandstorm for successive 10 year periods.

During negotiations Casimir Capital LP acted as agent for Rambler and is entitled to a 4.5% cash commission to be paid with each Deposit tranche pursuant to an agreement dated February 4, 2010.

George Ogilvie, President and CEO of Rambler commented: "We are extremely pleased to have signed this agreement with Sandstorm Resources. The agreement represents an attractive source of funding for Rambler allowing us to bring the Ming Mine into production while still giving Rambler shareholders full upside exposure to 100% of the copper, silver and the majority of the gold production at the Ming Mine."

About Rambler

Rambler was founded in 2004 when Altius Minerals Corporation ("Altius"), a Newfoundland and Labrador resource company, contributed to Rambler's asset base with an option to acquire and develop the Ming Mine. Following the acquisition of the Ming Mine, Rambler, listed on London AIM in 2005 and Toronto TSX‐V in 2007.

The Ming property had been a former underground copper and gold producing mine that ceased production when the deposit reached a then third party property boundary. This neighbouring property was subsequently consolidated before being brought into Rambler's portfolio. Rambler now owns a 100% interest in the property.

The area where the mine is located is a former mining centre and subsequently good existing infrastructure including roads, fresh water, hydro, access to a working port while the town of Baie Verte, population 1,300 is located 17km away.

Over the last several years Rambler has been exploring on the property leading to the publication of two NI431‐101 resource statements, the discovery of mineralized lenses and the extension of pre‐existing mineralized lenses. Today all mineralized lenses remain open in multiple directions while, importantly, the deposit has not been cut‐off at depth. The underground workings have been dewatered and services including air, water and electrical re‐installed.

In October 2009, Rambler purchased an operational gold hydrometallurgical mill, Nugget Pond, which is situated approximately 40km from the Ming Mine. Rambler intends to expand the mill so that is capable of handling massive sulphides from the mine to produce a copper concentrate with gold and silver as by‐products as well as recover any free gold.

Rambler is about to embark on the construction phase of the project with the intention of bringing the Ming Mine into production in 2011.

About Sandstorm Resources

Sandstorm Resources Ltd. Is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm receives volumetric production payments (i.e. metal stream deals) on precious metals. Sandstorm helps other companies in the resource industry grow their businesses, while acquiring attractive assets in the process.

Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed volumetric production payments with Luna Gold Corp, SilverCrest Mines Inc., Santa Fe Gold Corporation and Rambler Metals & Mining PLC. For more information visit: www.sandstormresources.com

Caution Regarding Forward‐Looking Statements

Certain information included in this press release, including information relating to future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute "forward‐looking statements." Such forward‐looking statements include, without limitation, estimates regarding timing of future development and production. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward‐looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward‐looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities, and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward‐looking statements. These forward‐looking statements are made as at the date hereof and Rambler does not undertake any obligation to update publicly or revise any such forward‐looking statements or any forward‐looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable securities law. For a more detailed discussion of such risks and other factors, see Rambler's latest filings with Canadian securities regulators.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rambler Metals and Mining Canada Limited
    George Ogilvie, P.Eng.
    President and CEO
    Rambler Metals & Mining Plc
    Leslie Little
    Company Secretary
    +44 (0) 14-8341-9942
    Seymour Pierce Limited
    Nandita Sahgal
    +44 (0) 20-7107 8000
    Pelham Bell Pottinger
    Klara Kaczmarek
    +44 (0) 20-7337-1524