Mr. George Ogilvie of Rambler reports
RAMBLER COMPLETES PURCHASE OF 50% INTEREST IN THE LITTLE DEER PROJECT
Rambler Metals and Mining PLC has closed the transaction with Cornerstone Capital Resources Inc. for the purchase of its 50-per-cent participating interest in the Little Deer copper deposit and Whalesback mine.
The purchase results from the conditions in respect of the conditional offer made to Cornerstone, which were announced on Sept. 17, 2013, having been satisfied and has been effected through Rambler's 100-per-cent-owned subsidiary, Rambler Metals and Mining Canada Ltd. The 50-per-cent interest in the Little Deer project remains subject to a joint venture agreement dated April 20, 2007, with Thundermin Resources Inc.
The purchase price paid for Cornerstone's 50-per-cent interest was $550,000, consisting of $200,000 in cash and $350,000 in common shares of Rambler, to be issued within 90 days of closing and after release of the company's year-end results on Oct. 29, 2013.
In addition, the purchase price consists of a 0.75-per-cent net smelter return on Rambler's proportionate share of all products derived from the Little Deer project subject to a buyback of 0.5 per cent of the NSR for $500,000 at any time; and the remaining 0.25 per cent of the NSR for fair market value as determined by the economics of the Little Deer project's feasibility study, at any time, following the completion of the feasibility study.
George Ogilvie, president and chief executive officer, commented: "We are pleased to have closed this deal so quickly and can now redirect our attention to working with Thundermin to help further the Little Deer project towards making a production decision. Some of the initial work required will be diamond drilling to move the inferred resource category into the measured and indicated resource categories in preparation for more detailed engineering studies.
"Looking at the potential of the past producing mines on the property we see many new synergies with our own fully integrated shipping and mineral processing facilities."