Purchase Agreement with Off-take Partner
2 September 2015
Rambler Enters Into Purchase Agreement with its
Off-take Partner Transamine Trading S.A.
London, England & Baie Verte, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc, a Canadian copper and gold producer, explorer and developer (TSXV: RAB, AIM: RMM) ("Rambler" or the "Company") today reports that its operating subsidiary, Rambler Metals and Mining Canada Limited, has entered into an Amended and Restated Purchase Agreement (the "Purchase Agreement") with Transamine Trading S.A. ("Transamine") wherein Rambler has extended its off-take agreement with Transamine with respect to concentrate from the Ming Copper-Gold Mine until 31 December 2021.
Pursuant to the terms of the Purchase Agreement, Transamine has agreed to purchase in advance, at Rambler's option, up to USD $5,000,000 of concentrate (the "Advance Purchase Payments"). The Advance Purchase Payments accrue interest at a rate of three month LIBOR plus 3.5 per cent per annum and will be secured by a second charge against the assets of Rambler's operating subsidiary and guaranteed by the Company. The Advance Purchase Payments will be used for working capital requirements along with the development and construction of Rambler's Lower Footwall Zone optimisation plan (Phase 2) at the Ming Mine.
The first USD $2,000,000 of Advance Purchase Payments was drawn on 31 July 2015 in advance of finalising the terms of the Purchase Agreement with an additional USD $1,000,000 in Advance Purchase Payments available to be drawn until 31 October 2015. The remaining USD $2,000,000 in Advance Purchase Payments, available until 31 October 2015, will be subject to:
i. Rambler having executed a legally binding term sheet between Rambler and a third party financier, providing for financing for the Phase 2 expansion, and
ii. Production levels of concentrate from the Ming Mine having reached five thousand (5,000) dry metric tonnes per quarter.
The Advance Purchase Payments shall be repaid by Rambler on the earlier of: 1 November 2015; or twenty-one days of receipt of third party financing for the Phase 2 expansion. In the event funds are not repaid by 1 November 2015 accrued interest on the outstanding balance will be three month LIBOR plus 7.0 per cent per annum. Repayment shall be in the form of a USD $350 per dry metric tonne reduction in the concentrates purchased by Transamine until such a time as Advance Purchase Payments are repaid.
Norman Williams, President and CEO commented:
"This is a pivotal time in our Company's future as we prepare to execute the Phase 2 Lower Footwall Optimisation and Expansion plan, as outlined in the press release dated 20 July 2015. This is a significant step forward for the operation and in addition to the more favorable commercial terms negotiated this Purchase Agreement will allow key construction and development projects to proceed ahead of the main financing, which is expected over the coming months.
"Rambler has had an excellent relationship with Transamine over the past years, and we are delighted to be aligned with such a great partner as we begin ramping up production for the next era of mining at our Canadian operation."
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development Company that in November 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.
The Company's vision is to be Atlantic Canada's leading mine operator and resource developer through growth and expansion of its existing assets; discovering new deposits; strategic partnerships; mergers and acquisitions. In addition to the Ming Mine, Rambler has strategic investments in the former producing Hammerdown gold mine, the Little Deer/ Whales Back copper mines and the advanced Valentine Lake Gold Project.
Rambler is dual listed in London under AIM:RMM and in Canada under TSX-V:RMM.
For further information, please contact:
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Norman Williams, CPA, CA President and CEO Rambler Metals & Mining Plc Tel No: 709-800-1929 Fax No: 709-800-1921 |
Peter Mercer Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +44 (0) 20 8652-2700 Fax No: +44 (0) 20 8652-2719 |
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Stewart Dickson / Jeremy Stephenson / David Porter Cantor Fitzgerald Europe Tel No: +44 (0) 20 7894 7000 |
Tim Blythe/ Megan Ray Blytheweigh Tel No: +44 (0) 20 7138 3204 |
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.
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 security law.
This information is provided by RNS
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