Rambler Metals & Mining PLC entered a definitive agreement for a US$5 million convertible loan note financing to improve tonnage and grades, reduce debt and for working capital.
The company owns the Ming copper-gold mine in Newfoundland, where it is focused on achieving mine and mill production of more than 1,350 tonnes per day at a grade of 2% copper. Its assets also include the past-producing Little Deer/Whales Back copper mines and a stake in the Hammerdown gold mine.
Rambler Metals said Aug. 19 that CE Mining III Rambler Ltd. agreed to fund a US$2.5 million commitment by Sept. 6, while Lombard Odier Asset Management (Europe) Ltd. is required to fund the other half by Aug. 21.
CE Mining III is a unit of CE Mining Fund III LP, an affiliate of CE Mining II LP, whose subsidiary CE Mining II Rambler Ltd. is a control person of Rambler.
The loan notes, convertible at 1.4 pence per share, will bear interest at 7% per annum and will mature on the first business day prior to the first anniversary of issuance.
If fully converted, CE Mining III will acquire about 9.2% of Rambler, while CE Mining III and CE Mining Rambler will have a combined ownership of about 62.5%, and Lombard will own about 20.3%.
Rambler Metals will seek shareholder approval for the transaction and plans to issue an update in mid-September.
