RAMBLER METALS AND MINING – US$20M Gold Sale Agreement with Sandstorm Resources

RAMBLER METALS AND MINING – US$20M Gold Sale Agreement with Sandstorm Resources

US$20M Gold Sale Agreement with Sandstorm Resources

Rambler Metals & Mining PLC (RMM) is pleased to announce that it has entered into an agreement with Sandstorm Resources Ltd. (TSX-V:SSL) to sell a portion of the life-of-mine gold production from its Ming Copper-Gold Mine, located in Baie Verte, Newfoundland.

Under the terms of the agreement Sandstorm Resources will make staged upfront cash payments for the gold to Rambler totalling US$20M. The ‘First Deposit’ of US$5M is available to Rambler immediately. The ‘Second Deposit’ of US$2M is available to Rambler upon completion and delivery to Sandstorm Resources of a satisfactory NI43-101 Feasibility Study, which Rambler anticipates completing in 2Q 2010. The ‘Third Deposit’ of US$13M is available to Rambler upon award of all necessary permits for the Ming Mine anticipated in 3Q 2010. In return, Sandstorm Resources will be entitled to 25% of the first 175,000 ounces of payable gold and thereafter 12% of all payable gold produced from the Ming Mine. The initial term of the agreement is for 40 years and is renewable thereafter by Sandstorm for successive 10 year periods.
During negotiations Casimir Capital LP acted as agent for Rambler and is entitled to a 4.5% cash commission to be paid with each Deposit tranche pursuant to an agreement dated February 4, 2010.

George Ogilvie, President and CEO of Rambler commented: “We are extremely pleased to have signed this agreement with Sandstorm Resources. The agreement represents an attractive source of funding for Rambler allowing us to bring the Ming Mine into production while still giving Rambler shareholders full upside exposure to 100% of the copper, silver and the majority of the gold production at the Ming Mine.”

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