RMM.L Regulatory News (RMM)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFERING OF SECURITIES FOR SALE IN THE UNITED STATES OF AMERICA AND NO SECURITIES HAVE BEEN OR WILL BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT 1933, AS AMENDED OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES OF AMERICA.

3 February 2022

Placing to Raise £3.8 million

Operational Update

London, England, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer and developer, is pleased to announce that the Company has raised gross proceeds of £3,833,643.70 (approximately US$5,200,000) by way of a placing of 14,466,580 new ordinary shares of 1 pence each (the "Placing Shares") at a price of 26.5 pence per Placing Share (the "Placing Price") (the "Placing"). 

The funds raised will be used to underwrite ongoing underground development (£2.4 million, or approximately US$3.2 million) and for working capital (£1.4 million, or approximately US$2.0 million). This Placing is in support of mining production expansion to a sustained 1,350 tpd at 2% copper and has positioned the Company to reach full mill production by the end of the first quarter of 2022. The revision to the mine plan following the resource update in December 2021 is underway. The Company will provide market guidance in Q1 2022 following completion of the plan and expects capital expenditures in 2022 to be in the range of US$10-15 million, including capital development in the underground mine.

The Company's cash position as at 2 February 2022 was approximately US$2.1 million. The Company's net debt position as at 2 February 2022 was approximately US$21.2 million.

Toby Bradbury, CEO commented: 

"We are pleased to receive significant support from investors, who are clearly interested in exposure to an operation that is poised to make positive steps forward in 2022. The now completed Lower Footwall Zone ("LFZ") 2nd egress raise means production activities have re-commenced in earnest in the highest-grade areas of the underground mine and we anticipate that we will be doubling our payable copper metal output to 7,000 tonnes Cu in 2022 from 3,418 tonnes in 2021.

As I write this, a long-hole production drill is set up and drilling in the first scheduled stope in the LFZ between 735 and 760 levels. This mining horizon will be followed in turn by the Upper Footwall Zone ("UFZ") between 770 and 790 levels. The Ming North Zone ("MNZ") cut and fill access development has already entered the ore zone and we are seeing good grades coming out of that area. Lastly, the 510L LFZ stoping is continuing, and development is proceeding into the LP East zone, a new zone which was only discovered by our Geology team in early January 2022 (see January 13, 2022 announcement). All together, we now have 4 mining horizons from which to draw material to feed the mill, which is what we have been working toward through 2021.

The operating status of our business has been substantially enhanced through the past year and the summary below, together with the Investor Presentation accompanying this announcement, support the positive future that is now in our grasp.

We look forward to reporting our progress in due course."

Operational Update

2021 HIGHLIGHTS

2021 was a catch-up and investment year for the business to ensure that the operation can sustain its planned production targets while having sufficient flexibility to mine several areas concurrently. Further details on this goal and other successes achieved in 2021 are detailed below:

Production and Developed State

· Further to the announcement on 18 January 2022, the Company has commenced long-hole stope drilling between 735 and 760 levels in the LFZ having completed the 2nd egress work from 735 to 701 levels on 26 January 2022, ahead of the original schedule.

· The developed state of the underground mine has now been brought to a position where full production through the processing plant is imminent. The status of the four main production areas in the mine are as follows:

o 510L LFZ: 100% of development required for 2022 production is complete and production activities have commenced. Recent exploration diamond drilling has also shown significant extensions to the known mineralization in this area (see announcement dated 13 January 2022).

o 770L and 790L UFZ: 100% of development required for 2022 production is complete. Production activities are scheduled to commence in February 2022.

o 785 Ming North Zone: Access to the zone is complete with the first development lift progressing through high-grade copper and gold mineralisation. The entire Ming North Zone has been redesigned for cut and fill extraction to maximise ore recovery with minimised dilution.

o 735L and 760L LFZ: 75% of the 2022 development requirement on these levels has been completed and the remainder will be completed in parallel to production activities. Production drilling has commenced on the initial production stope and first ore will be available in February 2022.

· As a result of this developed state, the Company is set to produce at least 7,000 tonnes of payable copper in 2022, essentially doubling the amount delivered in 2021 (3,418 tonnes payable copper).

Mineral Resource Update

· Rambler completed a 15,000m in-fill drilling programme to provide the detail needed for mine planning over the next 18 months. The data from the drilling programme was announced during 2021 in several positive exploration updates.

· At the end of 2021, this culminated in an updated copper mineral resource estimate for the mine which added an additional 19,900 tonnes of in-situ copper in the measured and indicated categories (see announcement dated 21 December 2021). Of particular relevance is the addition of 19,100 tonnes of in-situ copper in the high-grade Ming North Zone. This is over and above that which was incorporated in the plan previously and this material is projected to be mined over the next 48 months.

· In 2022, the intention is to maintain the in-fill drilling programme such that future planning and guidance will be prepared in a timely manner as part of the annual business cycle.

· A new mineral resource update, including an estimate of the precious metal content, is expected to be announced to market before the end of Q1 2022.

Discovery of New Mineralised Zones

· In January 2022, Rambler announced the discovery of a new zone of mineralisation called the LP Zone. The LP Zone is located in the upper portion of the mine and is immediately adjacent to infrastructure that could enable its mining with minimal development.

· The LP Zone is open across strike and vertically up as well as down. The Ming Mine has had limited traditional exploration drilling and the discovery of high-grade material adjacent to existing development is a testament to the undiscovered potential of the deposit.

· Diamond drilling is continuing in this area with further results to be announced within the coming weeks.

Copper Hedging

· The hedge, at the end of January 2022, stands at 110 tonnes (@ US$3.49/lb), and will be cleared in the next two weeks. The Company will consider a hedge strategy going forward.

· The waterfall chart in Figure 1 shows the projected improvement in revenue expected in 2022 compared to 2021, on the basis of increases in grade, plant throughput, and copper prices.

· The waterfall chart in Figure 2 shows the projected improvement in payable copper expected in 2022 compared to 2021, on the basis of increased grade and plant throughput.

To view Figure 1: Rambler 2022 projected revenue based on US$4.30/lb copper (includes completion of the 2021 hedge) and annual average copper head grade of 1.70%, please click here: 

http://www.rns-pdf.londonstockexchange.com/rns/5859A_1-2022-2-3.pdfTo view Figure 2: Rambler 2022 projected payable copper based on 1.70% copper head grade, please click here:

http://www.rns-pdf.londonstockexchange.com/rns/5859A_2-2022-2-3.pdf

January 2022 Operating Performance

Given the absence of formal guidance while the mine planning work is being completed, a summary of monthly performance will be provided.

The January 2022 preliminary and unreconciled results are shown below in Table 1.

Table 1: January 2022 preliminary operational results

*Unreconciled preliminary results, to be confirmed following closure of month end process.

Covid update

The Covid situation has been managed effectively with limited impact on operations. Rambler continues to manage the Covid impacts in line with federal, provincial and Company protocols.

Director Dealing

Toby Bradbury has agreed to participate in the Placing at the Placing Price, details of which are set out below:

\* Toby Bradbury holds 173,000 ordinary shares of the Company in his own name. 473,270 ordinary shares of the Company are held by Blackrock Global Ltd which is an affiliate of Toby Bradbury.

Raphael Mwangobola, Vice President and Project Director of the Company, has also agreed to acquire 18,868 Placing Shares at the Placing Price pursuant to the Placing.

Investor Presentation

A corporate presentation for Rambler dated 19 January 2022 will be available today at www.ramblermines.com and can also be accessed here: http://www.rns-pdf.londonstockexchange.com/rns/5859A_3-2022-2-3.pdf

Admission to Trading on AIM and Total Voting Rights 

Application will be made for the Placing Shares, which will rank pari passu with the existing ordinary shares, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence at 8:00 a.m. on or around 7 February 2022.

Following the issue of the Placing Shares, the total issued share capital of the Company will consist of 159,146,133 ordinary shares of 1 pence each. The Company does not hold any ordinary shares in Treasury. Therefore, the total current voting rights in the Company following Admission will be 159,146,133 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Market Abuse Regulation (MAR) Disclosure

Prior to its publication, certain information contained within this announcement was deemed to constitute inside information for the purposes of Article 7 of EU Regulation 596/2014 ('MAR'). In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. This inside information is set out in this announcement and such information is now considered to be in the public domain. Accordingly, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.

Important Notices

This announcement is for information purposes only and shall not constitute an offer to buy, sell, issue, or subscribe for, or the solicitation of an offer to buy, sell, issue, or subscribe for any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The distribution of this announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company or SP Angel that would permit an offering of such shares or possession or distribution of this announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and SP Angel to inform themselves about, and to observe such restrictions.

This announcement is being issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by SP Angel, nor any of their affiliates or agents (or any of their directors, officers, employees or advisers) for the contents of this announcement, or any other written or oral information made available to or publicly available to any interested party or its advisers, or any other statement made or purported to be made by or on behalf of SP Angel or any of their respective affiliates in connection with the Company or the Placing and any responsibility therefor is expressly disclaimed. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by SP Angel, or any of their affiliates, agents, directors, officers or employees as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Forward-looking statements

Certain statements, beliefs and opinions in this announcement are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

**ENDS**

ABOUT RAMBLER METALS AND MINING

Rambler is a mining and development Company that in November 2012 brought its first mine into commercial production. The group has a 100% ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year-round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.

Rambler's focus is to regain its production profile at 1,350 metric tonnes per day at 2% copper in the course of 2022 and evaluate expansion opportunities from that base.

Along with the Ming Mine, Rambler also owns 100% of the former producing Little Deer and Whales Back copper mines.

Rambler is listed in London under AIM:RMM.

For further information, please contact:

Website: www.ramblermines.com 

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