Ann: Acquisition of Green Bay Copper-Gold Project, page-23

A final and third background article. I hope you find it of use as you decide to participate in the AUT SPP to acquire the Green Bay Copper Gold Project out of administration.

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Rambler Metals & Mining: on the road to recovery?

• By James Norris
• 17th May 2021

Rambler Metals & Mining [LON: RMM], a Canadian junior miner with assets in the Baie Verte peninsula, Newfoundland and Labrador, says the first quarter of 2021 marks the start of its recovery.
Last year, Rambler came close to insolvency and production was halted to conserve cash while its finances were sorted out. A financing plan scheduled for September 2020 was delayed until December, which in turn set back the re-start of ore production, originally planned for the first quarter this year.
With production now started, Rambler’s focus is to return to full production capacity of 1,350 metric tonnes per day at 2% Cu by end of this year. Rambler owns 100% of the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year-round bulk storage and shipping facility. Along with the Ming Mine, Rambler also owns 100% of the adjoining former producing Little Deer / Whales Back and Ming West copper mine.
Outlook report for Rambler did not make good reading

Investors are unlikely to be enthused by Rambler’s current position, as set out in its performance and outlook report published 7 May. In fact, the report sent the value of its shares tumbling 27%, from 0.55p to 0.40p, as at 11 May, with a year-to-date return of 12.53% but down 75.24% over 12 months. With the heady heights of its share price at 74.50p in May 2007 a distant memory, followed by a steady decline ever since, Rambler is in definite need of an effective turnaround plan.
The launch pad for the recovery was the equity finance secured in December 2020, when Rambler agreed to a $5m secured loan from institutional investor West Face Capital. In the following February, an oversubscribed equity financing raised $10.5m, earmarked for near-term operations, such as mining equipment procurement and exploration, as well as longer term optimisation projects. The production delays are expected to affect the company’s cash position in the short term, so Rambler is investigating further financing options.
First quarter revenue was $7.06m, slightly up on the $6.58m of the same period last year. Under the terms of a 2020 hedge contract, Rambler sold 263 tonnes of copper at $5,820 per tonne and 578 tonnes of copper at $7,700 per tonne, as per the 2021 copper price hedge contract. One of the conditions in the debt financing with West Face Capital, completed in December 2020, was to hedge 3,600 tonnes of copper in 2021. As at March 31, 2021, there are 3,022 tonnes of copper to be fulfilled at $7,700 for the remainder of the year.
Sale of non-core assets to Maritime Resources

Revenues were also boosted at the end of the Q1 by a sale of some non-core assets, including the gold plant at the Nugget Pond metallurgical facility and a number of Canadian exploration properties and royalties, to Maritime Resources (TSX.V: MAE) for $2.0m in cash and Maritime common shares. Net debt was $3.46m for the period, while the cash position was $6.27m.
This year, Rambler’s strategy is to spread the risk of failure with a series of excavations. Work has re-started at the Ming Mine, particularly around the Lower Footwall Zone, which consists of stringer style chalcopyrite, pyrrhotite and lesser pyrite veinlets in a strongly chloritized felsic volcanic host rock. The drilling results show that the mineralised envelope is consistent with modelling done to date and that there are additional intercepts that fall outside of the current ore outlines. Gold and silver assays are currently being analysed by an external laboratory.
As with all mining businesses, Rambler’s prospects are closely tied to the price of commodities. The global economic recovery this year has lifted most metals above their pre-pandemic levels, with copper set to continue on its bull run and gold, after a weak first quarter, forecast to recover its 2020 highs. However, market prices are volatile and Rambler may come to rue the delays in restarting production and so miss much of the current wave of high prices.