In its Q3 statement, Rambler Metals & Mining (LON:RMM, TSX-V:RAB) reported its progress at the Ming copper-gold mine on the Baie-Verte peninsula, Canada, where the company is aims to start gold production in the 2011 fiscal year.
"We have had an extremely productive quarter with all aspects of the Ming Copper Gold Project fitting into place”, Rambler president and chief executive George Ogilvie commented. “We now have the key people, funding and environmental permitting needed to move the Ming Mine into production."
Over the past three months, Rambler has made considerable progress with several key events. Firstly, at the beginning of March, the company agreed a deal worth up to US$20m with Sandstorm Resources (TSX-V:SSL) to sell a portion of Ming’s life-of-mine gold production.
Under the terms of the deal, Rambler will sell 25% of the first 175,000oz of payable gold, and 12% of all further payable gold thereafter, for up to 40 years.
The company will receive the consideration through staged payments, linked to development milestones - consisting of an initial US$5m; US$2m due upon completion of a NI43-101 feasibility study; and US$13m when all permits for the Ming mine to start production have been awarded.
Later in March, Rambler benefited from a further cash-injection with an additional £2.6m being raised through a conditional placing of 8.6m shares at 32p each.
In April, Rambler told investors that it plans to its right to buy-back 3% of the total 4.5% Net Smelter Return (NSR) royalty held on the Ming property. The company also submitted the environmental registration for the mine, and published an operational update. The update summarised the ongoing work at the Nugget Pond Mill, where new key equipment is expected in August, as well as the infrastructure developments relating to Mine, Mill and Port construction.
April also saw a board appointment, with Norman Williams being promoted to chief financial officer (CFO) and the outgoing CFO remaining on the board as a non-executive director.
In financial terms, for the quarter ended 30 April 2010, net losses increased £114,411, to £387,559 in the three-month period and loss per share increased from 0.46p to 0.49p. As at 21 June 2010, Rambler has £7.1m in cash and cash equivalents.
Looking ahead, Ogilvie commented: “We look forward to completing the Feasibility Study which will enable the draw down of the second and third tranche payments, US$2m and US$13m respectively, under the agreement with Sandstorm Resources Ltd. We will then commence mill expansion and mine capital development with a target to begin production in fiscal year 2011."
Rambler noted that post-period, on 1 June, it received final environmental approval and project release from the government of Newfoundland and Labrador for the Ming mine.
The Ming mine is located on the Baie Verte Peninsula. Ming is Rambler’s primary focus, and it was initially a copper play, however, an extensive exploration programme conducted by Rambler over recent years has increasingly identified elevated gold grades. In February 2009, a NI 43-101 compliant resource update, showed a total measured and indicated resource of 3.651 million tons grading 2.21 percent copper and 1.37 grams per ton of gold.
http://www.proactiveinvestors.co.uk/companies/news/17935/rambler-metals-mining-reports-on-extremely-productive-quarter-at-ming-mine-development-17935.html
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