A drill rig underground at the Ming copper-gold mine in Newfoundland. Credit: Rambler Metals and Mining
Rambler Metals (AIM: RMM) has decided to pause operations at its 100% owned Ming mine located on the Baie Verte Peninsula of Newfoundland and Labrador, pending the delivery of key supplies to the mine site. It is expected that the mine will recommence on or before February 24.
This decision comes at a time when the London-listed copper-gold producer is continuing discussions around its financial restructuring. Rambler had previously defaulted on its loan agreement with Newgen Resources Lending, for which it is in the process of finding a solution, including refinancing or restructuring of the company.
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Earlier this month, the company also defaulted on its gold purchase and sale agreement with Elemental Altus Royalties (TSXV: ELE), under which it is required to make minimum gold deliveries of 1,200 ounces in each of the first three years. As no sale and delivery of gold has occurred in the last two financial quarters, the default condition has been triggered.
Rambler was formed in 2005 with the purpose of bringing the former Ming mine in Newfoundland and Labrador back into production. The company acquired the consolidated Ming property that year and subsequently proceeded to diamond drilling, mine dewatering, permitting, and finally, construction. Commercial production was declared at Ming in 2012.
The mine contains 10.6 million tonnes of measured and indicated resources at a grade of 1.77% copper, 0.61 g/t gold, 3.88 g/t silver and 0.15% zinc. Inferred resources stand at 1.8 million tonnes grading at 1.91% copper, 1.83 g/t gold, 8.82 g/t silver and 0.66% zinc.
In addition to Ming, Rambler also owns 100% interest in the former-producing Little Deer complex located within the Newfoundland Appalachians.