Gold Streaming Agreement with Elemental Royalties

RNS Number : 1136F

Rambler Metals & Mining PLC

17 March 2022

 

17 March 2022

Rambler Announces US$11 Million Gold Streaming Agreement with Elemental Royalties on Ming Mine

London, England, Newfoundland and Labrador, Canada -   Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer and developer, is pleased to announce that the Company has entered into a gold purchase and sale agreement with Elemental Royalties Corp. ("Elemental") (TSX-V:ELE, OTCQX:ELEMF) (the "Agreement"), in relation to production from its 100% owned Ming Mine , located in Newfoundland, Canada.  

The key terms of the Agreement are:

· Rambler will receive upfront cash consideration of US$11 million for Elemental's purchase of 50% of accountable gold until 10,000 ounces of gold have been delivered, decreasing to 35% until a further delivery of 5,000 ounces of gold and 25% thereafter for the life of the mine;

· Elemental will make ongoing payments to Rambler equal to 20% of the market price of gold for each ounce of gold delivered by Rambler;

· Rambler will make minimum gold deliveries of 1,200 ounces to Elemental in each of the first three years of the Agreement;

· Closing is expected to occur on or before 31 March 2022 and is subject to certain conditions including signing of intercreditor agreements, Elemental raising proceeds of at least US$7 million in a financing, and Rambler completing a repurchase of Rambler's current gold stream with Sandstorm Gold Royalties ("Sandstorm"). The consideration for the repurchase is US$7m less payable gold delivered since 1 October 2021 and 1,150 oz of gold to be delivered over the next 18 months.

Toby Bradbury, President and CEO commented:  

"Over its current life of mine, less than 3% of Ming Mine's revenue is from gold. The sale of an insignificant portion of our future production provides immediate funding to strengthen our balance sheet without any dilution to our shareholders at a time when the Company is about to realise its operating goals. It also provides first-ranked security to current and future lenders which will enable us to access future capital more easily. The transaction will release the gold delivery obligation of our Nugget Pond gold deposit, which improves its economic value in the future.

I wish to express my appreciation to all the parties that have worked together to bring this important transaction to fruition. I would like to thank Sandstorm for their support since the relaunch of the Ming Mine in 2010 and to welcome Elemental as a new partner for Rambler."

Production update and 2022 Guidance

Rambler will provide an update of its reconciled production for the first quarter and guidance for the balance of the year on Tuesday 12 April 2022 and will host an investor call at that time. Details to be provided in due course.  

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'), incorporated into UK law by the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

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% 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.

Rambler's focus is to regain its production profile at 1,350 metric tonnes per day at 2% copper in the course of 2022 and evaluate expansion opportunities from that base.

Along with the Ming Mine, Rambler also owns 100% of the former producing Little Deer and Whales Back copper mines.

Rambler is listed in London under AIM:RMM.

For further information, please contact:

Toby Bradbury President and CEO Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]	Eason Chen CFO Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]	T im Sanford. P. Eng. VP and Corporate Secretary Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]
Nominated Advisor (NOMAD)
Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: [phone]

Website:   www.ramblermines.com  

 

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