Rambler Completes Purchase of 50% Interest in the Little Deer Project
Marketwired
LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwired - Oct 15, 2013) - Rambler Metals and Mining plc (TSX VENTURE:RAB) (RMM.L) ('Rambler' or the 'Company'), a copper and gold producer operating in Newfoundland and Labrador, Canada, announces that the Company has closed the transaction with Cornerstone Capital Resources Inc. (CGP.V) ('Cornerstone') for the purchase of its 50 per cent participating interest in the Little Deer Copper Deposit and Whalesback Mine (together called the 'Little Deer Project').
The purchase results from the conditions in respect of the conditional offer made to Cornerstone, which were announced on 17 September 2013, having been satisfied and has been effected through Rambler's 100 per cent owned subsidiary, Rambler Metals and Mining Canada Limited. The 50 per cent interest in the Little Deer Project remains subject to a Joint Venture Agreement dated 20 April 2007 with Thundermin Resources Inc. (THR.TO) ('Thundermin').
The purchase price paid for Cornerstone's 50 per cent interest was CAD$550,000, consisting of CAD$200,000 in cash and CAD$350,000 in common shares of Rambler, to be issued within 90 days of closing and after release of the Company's year-end results on 29 October 2013.
In addition, the purchase price consists of a 0.75 per cent net smelter return (NSR) on Rambler's proportionate share of all products derived from the Little Deer Project subject to a buyback of 0.5 per cent of the NSR for CAD$500,000 at anytime; and the remaining 0.25 per cent of the NSR for fair market value as determined by the economics of the Little Deer Project's feasibility study, at any time, following the completion of the feasibility study.
George Ogilvie, President and CEO, commented:
"We are pleased to have closed this deal so quickly and can now redirect our attention to working with Thundermin to help further the Little Deer Project towards making a production decision. Some of the initial work required will be diamond drilling to move the inferred resource category into the measured and indicated resource categories in preparation for more detailed engineering studies.
"Looking at the potential of the past producing mines on the property we see many new synergies with our own fully integrated shipping and mineral processing facilities."
Additional information on the project and future work programs will be available on the Company's website at www.ramblermines.com.
ABOUT LITTLE DEER & WHALESBACK
The Little Deer copper Project, located in north-central Newfoundland, is a 50-50 joint venture with Thundermin, the project operator. Since 2007 approximately CAD$8 million has been invested into the property including 55,000 metres of diamond drilling, scoping level metallurgical test work, NI43-101 mineral resource estimates and a Preliminary Economic Assessment ("PEA").
The project includes the past-producing Little Deer and Whalesback underground copper mines which operated during the 1960's and 1970's. Cornerstone's press release, dated 26 July 2012, outlined a NI43-101 resource estimate for Little Deer and Whalesback containing combined Indicated Resources of 2,708,000 tonnes grading 2.16 per cent copper (129.1 million pounds of copper) and Inferred Resources of 4,191,000 tonnes grading 2.07 per cent copper (191.3 million pounds of copper). While Thundermin and Cornerstone have completed a NI43-101 technical report on the property, a qualified person from Rambler has not done sufficient work to classify the work as current mineral resources or mineral reserves; as such Rambler is not treating the historical estimate as current mineral resources or mineral reserves. Further review of the previous work will be completed with the closing of the agreement.
Planned future work consists of infill diamond drilling to upgrade any Inferred Resources to an Indicated or Measured Resource category in order to further advance the project's engineering studies. Good opportunities also exist to expand the mineral resources at both deposits.
The Little Deer Project is located less than 140 kilometres from the Company's Nugget Pond base and precious metals processing facility and only 30 kilometres from the Goodyear's Cove Port Facility.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development Company that in 2012 brought its first mine into commercial production. The group has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.
Our Company Vision is to be Atlantic Canada's leading mine operator and resource developer through the expansion of the Ming Mine, discovering new deposits and through mergers and acquisitions. Rambler listed on the London AIM in 2005 and Toronto TSX-V in 2007.
Larry Pilgrim, P.Geo., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Pilgrim is an independent consultant contracted by Rambler Metals and Mining Canada Limited.
Tonnes referenced are dry metric tonnes unless otherwise indicated.
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.
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 the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. 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 and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company 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 law.
