Maritime Resources Corp. [MAE-TSXV] on Wednesday December 23 said it has signed a letter of intent with a unit of Rambler Metals and Mining Plc [RMM-AIM] to purchase an existing gold circuit at the Nugget Pond metallurgical facility in Newfoundland.
Under the agreement, Maritime is also buying a number of Canadian exploration properties and royalties.
“We are pleased to announce this transaction with Rambler to purchase the gold processing circuit which is an important component to the Hammerdown gold project as we advance the project towards a development decision,” said Maritime President and CEO Garett Macdonald.
“The addition of the royalty package and a number of Canadian gold properties, particularly in the world-renowned Abitibi greenstone belt, provides additional exposure to a strengthening gold market,’’ he said.
Maritime shares advanced on the news, rising 8.0% or $0.01 to 13.5 cents in active trading of 923,000. The shares are trading in a 52-week range of 23 cents and $0.045.
Maritime Resources holds a 100% interest in the Green Bay property near Springdale Newfoundland and Labrador. The property hosts the past-producing Hammerdown gold mine, the Orion gold deposit, and Lochinvar precious metals deposit.
Rambler Metals and Mining has a strategic investment in the Hammerdown gold mine, held through a 17% equity stake in Maritime Resources, and is sharing its technical expertise with Maritime as it assesses the merits of restarting the Hammerdown mine. Rambler’s key asset is a 100% ownership of the Ming copper-gold mine, an operating base and precious metals processing facility and year-round bulk storage facility located in Baie Verte peninsula in Newfoundland.
The proposed transaction announced on Wednesday includes the following assets:
The Nugget Pond gold circuit, an existing carbon-in-pulp leach plant that was previously used to process ore from the Hammerdown mine. The Lac Pelletier gold property in the city of Rouyn-Noranda, Quebec, 5 km south of Glencore’s Horne smelter. A portfolio of Canadian mineral exploration properties and royalty interests, including the Gold Hawk property (2% NSR) and Valdora property (1% NSR) near the city of Val d’Or, Quebec.
Maritime will pay $2 million in cash and issue $500,000 worth of common shares, based on the 30-day volume weighted average price on closing.
Commander Resources Ltd. [CMD-TSXV] holds a 2.0% NSR on the Hammerdown property but not on the Orion deposit.