(Alliance News) - Rambler Metals & Mining PLC on Monday said its financial position was uncertain as it faced the possibility of default payments in relation to a contract with Sandstorm.
The defaults occurred as the copper and gold producer has not met delivery targets included in the agreement.
Rambler has ten days to either deliver 958 ounces of gold or make a cash payment to Sandstorm of around CAD2.4 million, or GBP1.5 million. Sandstorm and Rambler intend to enter discussions regarding a solution to the default.
But Rambler warned, "there can be no guarantee that Sandstorm will agree to defer or reschedule the sale and delivery of gold pursuant to the agreement."
"Accordingly, the company's financial position remains uncertain," it added.
Rambler said it remains in discussions with several groups as it seeks to restructure its finances.
Shares in Rambler Metals & Mining were suspended in late October.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.