Oct 15 2013
Rambler Metals and Mining plc ('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. ('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. (TSX:THR) ('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.
Source: http://www.ramblermines.com/