Rambler Metals & Mining PLC (TSX: RAB; AIM: RMM) said it has raised £5.5 million before expenses through an oversubscribed placing of 27.5 million shares at 20 pence each, or approximately C$0.345 per share. The placing was announced earlier this week.
The money will go towards funding the previously announced proposed acquisition and refurbishment of a gold processing facility located on Newfoundland’s and Labrador’s Baie Verte Peninsula, Canada.
The Nugget Pond mill facility is a fully operational gold hydrometallurgical mill, which includes a gold concentrator. The facility will be adapted to process base metal sulphides from Rambler’s Mingcopper mine 40 kilometres away through the addition of a copper flotation circuit, as well as process the 'free gold' that exists in the Rambler geological system.
The modification will diversify the existing facility and allow for a range of processing capabilities. The purchase price for the facility, as agreed in the sale and purchase agreement signed with Crew Gold Corp (TSX: CRU, OTCBB: CRUGF) is C$3.5 million.
The additional funding will also enable Rambler to accelerate its programme of assessing additional opportunities to acquire potential gold and base metal properties in the surrounding area.
Rambler president and CEO George Ogilvie said: "The successful placing clearly endorses our strategy of acquiring the facility, enabling Rambler to accelerate its plan to become a producer of gold and copper in 2010.
The new funds raised will also afford Rambler the time to negotiate fair terms for the additional funding required for construction to bring the Ming mine into production. Rambler is in negotiations with other institutions for additional funding. These additional funds could be available early in the first quarter 2010 before the completion of engineering.
Rambler plans to restart operations at Ming in 2010. The mine is estimated to contain a NI 43-101 measured and indicated resource of 3.65 million tonnes at 2.21% copper, 1.37 g/t (grammes per tonne) gold, 7.86 g/t silver and 0.39% zinc. There is another 1.5 million tonnes in the inferred category.