Rambler Metals & Mining Plc

Rambler Metals & Mining Plc

October 02, 2009 09:05 ET

Rambler Metals & Mining Plc: Placing Raises Pounds Sterling 5.5 Million

LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 2, 2009) - Further to the announcement of 29 September 2009, Rambler Metals & Mining PLC (TSX VENTURE:RAB) (AIM:RMM) (the "Company") announces today it has conditionally placed 27,500,000 Ordinary Shares at 20 pence each (approximately Cdn.$0.345 per share) to raise approximately Pounds Sterling 5.5 million before expenses. The placing was oversubscribed.

The Company intends to use the net proceeds realized from the placing to fund the previously announced proposed acquisition of a gold milling facility (the "Facility") and subsequent engineering work on the Facility. The Facility is located on the Baie Verte Peninsula in Newfoundland, just 40 km from Rambler's Ming Mine.

The Nugget Pond Mill Facility is a fully operational, permitted gold hydrometallurgical mill, which includes a gold concentrator. The Facility will be adapted to process base metal sulphides from the Ming Mine through the addition of a copper flotation circuit, as well as process the 'free gold' that exists in the Rambler geological system. The modification will diversify the existing facility and allow for a range of processing capabilities. The purchase price for the Facility, as agreed in the sale and purchase agreement signed with Crew Gold Corporation (TSX:CRU) (OSE:CRU) (Frankfurt:KNC) (OTCBB:CRUGF) ('Crew'), is $3.5 million CDN.

The additional funding will also enable Rambler to accelerate its programme of assessing additional opportunities to acquire potential gold and base metal properties in the surrounding area.

The placing is subject to a placing agreement entered into today between the Company and Ocean Equities Limited, the passing by shareholders at an extraordinary general meeting of the Company to be held on 20 October 2009 of resolutions giving authority to allot shares pursuant to the placing, and approval of the TSX Venture Exchange.

Ocean Equities Limited has been retained as broker for the Placing and Seymour Pierce Limited is acting as a placing agent.

George Ogilvie, President and CEO commented:

"The successful placing clearly endorses our strategy of acquiring the Facility, enabling Rambler to accelerate its plan to become a producer of gold and copper in 2010.

The new funds raised will also afford Rambler the time to negotiate fair terms for the additional funding required for construction to bring the Ming mine into production. Rambler is in negotiations with other institutions for additional funding. These additional funds could be available early in 1Q 2010 before the completion of engineering.

In addition the funding will allow Rambler to adopt a more proactive approach in searching for potential gold properties in the surrounding area and reach its goal of becoming a major gold and base metal producer on the Baie Verte Peninsula."

About the Company

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

The principal activity of the Group is carrying out development and exploration on the Rambler Property, a mineral exploration property located on Newfoundland and Labrador's Baie Verte Peninsula.

This press release may contain forward-looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect the Company's current expectations regarding future results or events and are based on information currently available to management. Certain material factors and assumptions are applied in providing these forward-looking statements.

Management believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however, management can give no assurance that actual results will be consistent with these forward-looking statements. Statements about potential discoveries or extensions of mineralization and deposits are examples of forward-looking statements. There is no guarantee that any discovery of commercial mineralization will be made on any of Rambler's properties. The material factors or assumptions that were applied in providing these forward-looking statements are contained in various security filings, including the Company's annual and quarterly MD&A all of which are available on SEDAR at www.sedar.com and the Company's website.

Undue reliance should not be placed on any of the Company's forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publically update any such statement or to reflect new information or the occurrence of future events or circumstances, except as may be required under applicable securities laws.

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 Public Relations
    Chelsea Hayes/Klara Kaczmarek
    +44 (0) 20-7337-1523 /20-7337-1524
    Ocean Equities Limited
    Guy Wilkes
    +44 (0) 20-786 4370