RAMBLER METALS AND MINING PLC
FINANCIAL RESULTS YEAR ENDED 31 JULY 2010
London, England & Baie Verte, Newfoundland and Labrador - Rambler Metals and Mining PLC (TSXV: RAB, AIM: RMM) (“Rambler” or the “Company”) today is pleased to report its financial results and operational highlights for the year ended 31 July 2010. The Company is focused on bringing the Ming Mine Property, a historic copper and gold property located in Newfoundland and Labrador’s Baie Verte Peninsular, Canada, into full production.
Significant Operational Achievements
o Purchased the Nugget Pond Mill Facility in October 2009 for CAD $3.5 million;
- Entered into a Gold Loan agreement in March 2010 raising US$20 million;
- Secured final environmental approval and project release and subsequently received permission to proceed with retrofit construction at the Nugget Pond Mill and the Mine Shaft Manway at the Ming mine;
- Strengthened the senior executive management team by promoting Norman Williams to Chief Financial Officer, and making other key appointments specifically in the engineering department; and
- Again maintaining exemplary safety standards with no accidents, injuries or incidents reported and no environmental incidents.
The Company released its final Feasibility Study for the Ming Mine in August 2010, indicating:
- Pre-tax Operating Cash Flow of US$71.0 million
- Net Present Value of US$14.3 million discounted at 6%, payback of 1.5 years and an Internal Rate of Return of 23.7% over a 6 year Life of Mine
- Initial capital costs are projected at US$25.5 million with sustaining capital estimated at US$27.9 million
Financial Highlights (All expressed in CAD$)
- Loss after taxes increased to $2,425,885 for the year ended 31 July 2010 amounting to a loss per share of $0.029 (2009: Loss per share of $0.034).
- Net assets of $46,823,427 at 31 July 2010 including intangible assets of $37.0 million which consisted of accumulated deferred exploration expenditures on the Ming Mine Property.
- The Company benefited from two share placings in this fiscal year to fund first the acquisition of the Nugget Pond Mill and associated engineering and then to provide additional working capital for the construction phase required to bring the Ming Mine into production:
- 21 October 2009, the Company placed 27,500,000 Ordinary Shares raising approximately $8.9 million, after expenses; and
- 31 March 2010, the Company placed 8,600,000 Ordinary Shares raising approximately $4 million, after expenses.
- Cash flows used for operating activities increased by $437,893 to $2,107,185 as a result of increased cash operating losses.
- At 15 October 2010, the Company has $7.9 million in cash and cash equivalents.
George Ogilvie, President and CEO, Rambler Metals & Mining commented;
“We are extremely pleased with the progress made over the past year in developing the Ming Mine and bringing the Nugget Pond Mill into production, including receiving environmental and regulatory approvals. With the completion of the promising Feasibility Study and NI43-101 Technical Report, Rambler is well positioned to remain focused on the development of the project. We now aim to bring the Ming Mine into production during 2011.”
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Rambler Metals and Mining is Junior Mining Company that has 100% ownership of the Ming Copper-Gold Mine in Baie Verte, Newfoundland and Labrador, Canada. Our objective is to become a mid-tier mining company by bringing the Ming Mine into production, discovering new deposits and through M&A’s. Following the acquisition of the Ming Mine, Rambler, listed on the London AIM in 2005 and Toronto TSX-V in 2007.
The Ming property had been a former underground copper and gold producing mine that ceased production when the deposit reached a then third party property boundary. This neighbouring property was subsequently consolidated before being brought into Rambler’s portfolio. Rambler now owns a 100% interest in the property.
The area where the mine is located is a former mining centre and subsequently good infrastructure exists including roads, fresh water, hydro, access to a working port while the town of Baie Verte, population 1,300 is located 17km away.
Over the last several years Rambler has been exploring on the property leading to the publication of three NI43-101 resource statements, a newly published reserve statement, the discovery of new mineralized lenses and the extension of pre-existing lenses. Today all mineralization remains open in multiple directions while, importantly, the deposit has not been cut-off at depth. The underground workings have been dewatered and services including air, water and electrical re-installed.
In October 2009, Rambler purchased an operational gold hydrometallurgical mill, Nugget Pond, which is situated approximately 40km from the Ming Mine. Rambler intends to expand the mill so that it is capable of handling massive sulphides from the Ming Mine and produce a copper concentrate with gold and silver as by-products. By utilizing the hydrometallurgical facility, in conjunction with the concentrator, the company anticipates increased gold recovery as well as recovering any free gold.
Following the successful publication of a positive Feasibility Study Rambler has now entered the construction phase of the project and expects to bring the Ming Mine back into production in 2011.