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Rambler Metals' new Transamine deal to allow Ming expansion

Published: 15:07 02 Sep 2015 BST

Rambler Metals' new Transamine deal to allow Ming expansion
Rambler unveiled a new deal with Transamine. Pictured is the plant at Ming

Rambler Metals (LON:RMM, CVE:RAB)  told investors it had secured a more favourable purchase agreement with long-running partner Transamine, which will allow it to put its expansion plan at the Ming mine into action.

The off-take agreement with Transamine for concentrate from the Ming copper and gold mine has been extended until the end of 2021.

Moreover, Transamine will buy up to US$5mln worth of concentrate in advance - the first US$2mln of which was drawn by Rambler at the end of July with a further US$1mln available to be drawn until October 31 this year.

The money will be used for working capital but also for the development of Rambler's phase 2 of the Lower Footwall Zone optimisation plan at the Canada mine.

A remaining US$2mln available until the end of October is subject to Rambler striking a legally binding term sheet for financing the expansion and production reaching 5,000 dry metric tonnes per quarter.

Rambler's president and chief executive Norman Williams said the phase two expansion was a pivotal time for the company.

"This is a significant step forward for the operation and in addition to the more favorable commercial terms negotiated this purchase agreement will allow key construction and development projects to proceed ahead of the main financing, which is expected over the coming months.

"Rambler has had an excellent relationship with Transamine over the past years, and we are delighted to be aligned with such a great partner as we begin ramping up production for the next era of mining at our Canadian operation."

Rambler is due to repay the advanced payments on the earlier of: November 1, 2015; or twenty-one days of receipt of third party financing for the Phase 2 expansion.

Rambler shares were unchanged at 8.75p.

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