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Monday, 3 June 2013
UPDATE: Rambler Metals makes another dent in Sprott loan
---Adds broker comment and share price---
Copper and gold producer Rambler Metals and Mining (LON:RMM, CVE:RAB) has made a further dent in its loan with Sprott Resource Lending.
Under the credit facility, the firm now has C$5.9 million left to pay after it paid off C$600,000 on May 31, it said.
"With the additional free cash flow now being generated from operations the company will continue reducing this debt with the intention of having the facility completely repaid by the end of calendar year 2013 or sooner," the company said.
Last week, the firm announced it had made a further shipment of copper concentrate from its bulk storage facility in Canada to off-take partner Transamine.
The miner shipped a further 6,112 wet metric tonnes (wmt), with average grades of the concentrate 28.2% copper, 6.57 grams per tonne (g/t) gold and 49.62 g/t silver.
It was the third load under the agreement with Transamine and takes the amount shipped since Rambler’s Ming mine started production a year ago to just over 18,000 wmt.
That followed a further announcement that its strategic partner, Maritime Resources, has released its first NI43-101 compliant resource encompassing the entire Green Bay Property group - putting it at more than 400,000 ounces of gold in the measured and indicated category, using a 3 grams per tonne (g/t) cut-off grade.
Rambler holds a 17% equity stake in Maritime.
Broker Ocean Equities noted that this resource update exceeded expectations. "Recent results from the project clearly illustrate the prospective nature of the general area in which Rambler is the operating lynchpin and point to the opportunities Rambler has on its horizon," it said.
"Rambler has proven itself as a good developer and now operator of base and precious metal operations. It could use these now honed skills to increase its operating footprint to include satellite projects around the Nugget Pond plant," it adds.
"The company is paying down its debts as its goes. The Sprott Facility allowed Rambler to financially de-risk the operation at the start-up of the copper concentrate line at the Nugget Pond plant. There remains C$5.9m of the facility left to repay and should Rambler maintain its current production success the company should clear the debt in the short term."
Rambler shares added 2.7% today to stand at 28.50p.