Copper and gold miner Rambler Metals and Mining PLC (LON:RMM CVE:RAB) has signed an additional purchase agreement with offtake partner, Transamine, to complete the expansion of the Ming Mine in Newfoundland.
The advance purchase payment of US$4mln will provide working capital while the phase II expansion at Ming is finalised.
Interest, payable at a rate of 6.75% annually, is secured by Transamine's existing charge against the assets of Rambler Canada and is guaranteed by the company. .
Repayment will be in 18 equal monthly instalments plus interest starting 180 days following the advance.
Transamine has also been granted a right of first refusal over concentrates produced for five years starting in 2022.
Norman Williams, Rambler’s president and chief executive, said: "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.
“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.
“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.”