Rambler Enters Conditional Agreement to Purchase Cornerstone's 50% Interest in
the Little Deer Copper Project
LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR --
(Marketwired) -- 09/17/13 -- Rambler Metals and Mining plc
(AIM:RMM)(TSX VENTURE:RAB) ('Rambler' or the 'Company'), a copper and
gold producer operating in Newfoundland and Labrador, Canada,
announces that, through its 100 per cent owned subsidiary Rambler
Metals and Mining Canada Limited, a conditional offer has been
accepted by Cornerstone Capital Resources Inc. (TSX VENTURE:CGP)
('Cornerstone') whereby Rambler will purchase their 50 per cent
participating interest in The Little Deer Copper Deposit and
Whalesback Mine (together 'The Little Deer Project').
The 50 per cent interest is subject to a Joint Venture Agreement
dated 20 April 2007 with Thundermin Resources Inc. (TSX:THR)
('Thundermin'). Rambler's offer is still subject to completion by the
Company of a full due diligence review and negotiation and agreement
on the final terms and conditions.
The purchase price for Cornerstone's interest is CAD$550,000,
consisting of CAD$200,000 in cash and CAD$350,000 in common shares of
Rambler to be issued on closing.
In addition, the purchase price consists of a 0.75 per cent net
smelter return (NSR) on Cornerstone's proportionate share of all
products 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 projects
feasibility study, at any time, following the completion of the
The Little Deer Project is located less than 140 kilometres from the
Company's Nugget Pond base and precious metals processing facility
and only 30 kilometres from the Goodyear's Cove Port Facility.
George Ogilvie, President and CEO, commented:
"The Little Deer Project resembles our own producing Ming Mine just
five years ago. These mines were once profitable copper mines, like
Ming, that closed and have remained dormant until now, despite having
significant mineralization 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 expected closing date for the transaction will be on or before 14
November 2013. A further announcement will be made in due course.
Following closing information on the project and future work programs
will be available on the Company's website at www.ramblermines.com.
ABOUT LITTLE DEER & WHALESBACK
The Little Deer copper project, located in north-central
Newfoundland, is a 50-50 joint venture with Thundermin, the project
operator. Since 2007 approximately CAD$8 million 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 ("PEA").
The project includes the past-producing Little Deer and Whalesback
underground copper mines which operated during the 1960's and 1970's.
Cornerstone's press release, dated 26 July 2012, outlined a NI43-101
resource estimate for Little Deer and Whalesback containing combined
Indicated Resources of 2,708,000 tonnes grading 2.16 per cent copper
(129.1 million pounds of copper) and Inferred Resources of 4,191,000
tonnes grading 2.07 per cent copper (191.3 million pounds of copper).
While Thundermin and Cornerstone have completed a NI43-101 technical
report on the property, a qualified person from Rambler Metals and
Mining has not done sufficient work to classify the work as current
mineral resources or mineral reserves; as such the Company is not
treating the historical estimate as current mineral resources or
mineral reserves. Further review of the previous work will be
completed following the closing of the agreement.
A PEA completed in November 2011 by P&E Mining Consultants Inc. on
the Little Deer deposit, on a stand-alone basis, demonstrated the
technical and economic viability of developing a new underground
copper mine at Little Deer. Planned future work consists of infill
diamond drilling to upgrade any Inferred Resources to an Indicated or
Measured Resource category in order to further advance the project's
engineering studies. Good opportunities also exist to expand the
mineral resources at both deposits. The Company has not verified the
results of the PEA.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development Company that in 2012 brought its
first mine into commercial production. The group has a 100 per cent
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.
Our Company Vision is to be Atlantic Canada's leading mine operator
and resource developer through the expansion of the Ming Mine,
discovering new deposits and through mergers and acquisitions.
Rambler listed on the London AIM in 2005 and Toronto TSX-V in 2007.
Larry Pilgrim, P.Geo., is the Qualified Person responsible for the
technical content of this release and has reviewed and approved it
accordingly. Mr. Pilgrim is an independent consultant contracted by
Rambler Metals and Mining Canada Limited.
Tonnes referenced are dry metric tonnes unless otherwise indicated.
Neither TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including
information relating to future financial or operating performance and
other statements that express the expectations of management or
estimates of future performance constitute "forward-looking
statements". Such forward-looking statements include, without
limitation, statements regarding copper, gold and silver forecasts,
the financial strength of the Company, estimates regarding timing of
future development and production and statements concerning possible
expansion opportunities for the Company. Where the Company expresses
or implies an expectation or belief as to future events or results,
such expectation or belief are based on assumptions made in good
faith and believed to have a reasonable basis. Such assumptions
include, without limitation, the price of and anticipated costs of
recovery of, copper concentrate, gold and silver, the presence of and
continuity of such minerals at modeled grades and values, the
capacities of various machinery and equipment, the availability of
personnel, machinery and equipment at estimated prices, mineral
recovery rates, and others. However, forward-looking statements are
subject to risks, uncertainties and other factors, which could cause
actual results to differ materially from future results expressed,
projected or implied by such forward-looking statements. Such risks
include, but are not limited to, interpretation and implications of
drilling and geophysical results; estimates regarding timing of
future capital expenditures and costs towards profitable commercial
operations. Other factors that could cause actual results,
developments or events to differ materially from those anticipated
include, among others, increases/decreases in production; volatility
in metals prices and demand; currency fluctuations; cash operating
margins; cash operating cost per pound sold; costs per ton of ore;
variances in ore grade or recovery rates from those assumed in mining
plans; reserves and/or resources; the ability to successfully
integrate acquired assets; operational risks inherent in mining or
development activities and legislative factors relating to prices,
taxes, royalties, land use, title and permits, importing and
exporting of minerals and environmental protection. Accordingly,
undue reliance should not be placed on forward-looking statements and
the forward-looking statements contained in this press release are
expressly qualified in their entirety by this cautionary statement.
The forward-looking statements contained herein are made as at the
date hereof and the Company does not undertake any obligation to
update publicly or revise any such forward-looking statements or any
forward-looking statements contained in any other documents whether
as a result of new information, future events or otherwise, except as
required under applicable law.
Rambler Metals and Mining
George Ogilvie, P.Eng.
President and CEO
709-800-1929 or 709-800-1921
Rambler Metals & Mining Plc
+44 (0) 20 8652-2700
+44 (0) 20 8652-2719 (FAX)
Cantor Fitzgerald Europe
Stewart Dickson / Jeremy Stephenson
+44 (0) 20 7894 7000
Blythe Weigh Communications
Tim Blythe/Halimah Hussain
+44 (0) 20 7138 3205
Ocean Equities Limited
+44 (0) 20-7786-4370
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