🕐05.03.10 - 02:47 Uhr
RAMBLER METALS AND MINING US$20M Gold Sale Agreement with Sandstorm Resources
March 4th, 2010
RAMBLER METALS AND MINING
US$20M Gold Sale Agreement with Sandstorm Resources
Rambler Metals & Mining PLC (Rambler), (TSX-V:RAB), (AIM:RMM) is pleased
to announce that it has entered into an agreement with Sandstorm Resources
Ltd.
(TSX-V: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.
For further information, please contact:
George Ogilvie, P.Eng.
President and CEO
Rambler Metals and Mining
Canada Limited
Tel No: 709-532-4990
Leslie Little
Company Secretary
Rambler Metals & Mining Plc
Tel No: +44 (0) 14-8341-9942
Nandita Sahgal
Seymour Pierce Limited
Tel No: +44 (0) 20-7107 8000
Klara Kaczmarek
Pelham Bell Pottinger
Tel No: +44 (0) 20-7337-1524
Website: www.ramblermines.com
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.
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 Ramblers 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 Ramblers latest filings with Canadian
securities regulators.
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