(Alliance News) - Rambler Metals & Mining PLC on Thursday said it has signed a preliminary agreement for Maritime Resources Corp to evaluate Rambler's Nugget Pond gold plant.
This includes the possibility of Maritime Resources buying the plant.
Rambler has signed a non-binding letter of intent with Maritime Resources which includes an exclusivity period of 12 months for Maritime to evaluate Nugget Pond.
This is to explore processing feed from the Hammerdown gold project at the plant and to complete a feasibility study with the option to negotiate a purchase agreement during that time.
The gold plant is a small section of the total Nugget Pond concentrator plant and is not used to process ore by Rambler. Maritime will have a right of first refusal to match any competing offers for the plant during the 12-month period.
The Nugget Pond plant is located in the Baie Verte peninsula in northeastern Newfoundland, Canada. Maritime's Hammerdown is an underground mining project located in the Newfoundland & Labrador province of Canada.
Rambler Metals & Mining shares were down 14% at 1.20 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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