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Tuesday, 17 September 2013
Rambler Metals furthers ambitions as sets sights on dormant copper project
Junior miner Rambler Metals and Mining (LON:RMM, CVE:RAB) is set to buy a dormant copper mine project in Newfoundland.
The Little Deer project is in a similar state to how the firm's now producing Ming Mine in Bai Verte was five years ago, the company noted.
The copper deposit and associated Whalesback mine lie less than 140km from Rambler's Nugget Pond facility and only 30km from the Goodyear's Cove port.
Cornerstone Capital Resources has conditionally accepted an offer whereby Rambler will purchase Cornerstone's 50% participating interest in the project for C$550,000.
This will consist of C$200,000 in cash and C$350,000 in Rambler shares - to be issued on closing, expected to be on or before November 14 this year.
Rambler president and chief executive George Ogilvie said: "These mines were once profitable copper mines, like Ming, that closed and have remained dormant until now, despite having significant mineralisation still in the ground.
"We believe, based on our experience of successfully bringing the Ming Mine back into commercial production, we have the capability and expertise to resurrect the Little Deer and Whalesback Mines, if viable.
"The mines are also in close proximity to our port facility at Goodyear's Cove which could allow for bulk shipping the material into our Nugget Pond Processing Facility, thus minimizing both future capital and operating costs.
"This acquisition is another strong indicator to our shareholders, and the market in general, of our vision to be Atlantic Canada's leading mine operator and resource developer."
The Little Deer copper project is a 50-50 joint venture with Thundermin, the project operator.
Since 2007 around C$8mln has been invested into the property including 55,000 metres of diamond drilling, scoping level metallurgical test work, NI43-101 mineral resource estimates and a Preliminary Economic Assessment.