LONDON (Alliance News) - Rambler Metals and Mining PLC Thursday said it has signed a non-binding letter of intent to merge its wholly-owned subsidiary with Thundermin Resources Inc, which will see the two companies merge their interests in two copper projects in Canada.
Rambler and Thundermin are already partners on the Little Deer and Whalesback copper projects in Canada, each owning a 50% stake in each, and under the deal both projects will be consolidated under Rambler's possession.
Under the proposed deal, Thundermin will amalgamate with a wholly-owned subsidiary of Rambler, meaning the enlarged Rambler will fully own the Little Deer and Whalesback copper assets.
Rambler will issue over 7.1 million shares to Thundermin shareholders at a price equivalent to CAD0.013 per share.
That will result in Thundermin shareholders owning around 4.7% of the enlarged share capital of Rambler once the deal is completed, with existing shareholders owning the remaining 95.3% stake.
"I am pleased to have signed this letter of intent with Thundermin, which owns an interest in the Little Deer and Whalesback copper assets, and believe it will positively contribute to the growth of Rambler as a regional producer, explorer and developer," said President and chief executive Norman Williams.
"I believe that the consolidation of the Little Deer and Whalesback under one ownership will benefit both Rambler and Thundermin shareholders through the shared use of the mining and processing infrastructure currently in place," he added.
Rambler shares were up 2.4% to 8.45 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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