Rambler Metals and Mining, a Canadian copper and gold producer, explorer and developer reports that its operating subsidiary, Rambler Metals and Mining Canada Ltd, has entered into an Addendum to its Amended and Restated Purchase Agreement with Transamine Trading. Pursuant to the terms of the Addendum, Transamine has agreed to purchase in advance $4,000,000 of concentrate (the Advance Purchase Payment). The Advance Purchase Payment accrues interest at a rate of 6.75% per annum and is secured by Transamine’s existing charge against the assets of Rambler Canada and is guaranteed by the company. The Advance Purchase Payment will be used for working capital requirements as the company finalizes its Phase II expansion at the Ming mine.
The Advance Purchase Payment shall be repaid in 18 equal monthly installments of $222,222.33 plus interest commencing 180 days following the advance. The monthly repayments shall be in the form of cash or a deduction against provisional invoicing. As an additional consideration for the Advance Purchase Payment, Rambler Canada has also agreed to provide Transamine a Right of First Refusal on any offtake agreement pertaining to concentrates for a period of five years commencing 1 January 2022, in accordance with the terms of Addendum.
Norman Williams, President and CEO, commented: “We are nearing the end of our planned Phase II expansion which has extended the life of the project by nearly 20 years. During this pivotal time we have elected to secure this term financing to ensure sufficient working capital is available for the operation during its final transition.
“Rambler continues to foster an excellent relationship with its concentrate offtake partner. Since entering into commercial production in 2012 Transamine has been a continuous supporter of our project and has no doubt benefited from the delivery of Rambler’s high grade and quality concentrate. As we look toward future decades of production at the Ming mine the Right of First Refusal offer will provide Transamine with an option to continue its relationship beyond the existing contract termination date of December 2021. We are pleased to be continuing with Transamine as we finalize our Phase II expansion plans over the coming months.”
Rambler is a mining and development company that in November 2012 brought its first mine into commercial production. Rambler has a 100% 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.
Rambler’s ongoing Phase II plans are to sustain mine and mill production at 1,250 t/d in 2018. This initial expansion has been fully funded through CEII’s investment. Rambler will also continue advancing Phase III engineering studies with a view to further increase production to 2,000 t/d at the Ming mine.
Along with Ming, Rambler also owns 100% of the former producing Little Deer/ Whales Back copper mines and has strategic investment in the former producing Hammerdown gold mine.