The Gold Plant is a small section of the total Nugget Pond concentrator plant and is not used to process ore by Rambler
Maritime has signed a letter of intent on Nugget Pond Gold Plant. (Credit: Adam Radosavljevic from Pixabay)
Maritime Resources has entered into a non-binding letter of intent (LOI). With Rambler Metals and Mining Canada, a wholly-owned subsidiary of Rambler Metals and Mining.
The non-binding LOI includes an exclusivity period of twelve months for Maritime to evaluate Rambler’s Nugget Pond Gold Plant for the purpose of processing feed from the Hammerdown gold project 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 this time. In consideration Maritime will advance a deposit of $200,000 to Rambler.
Garett Macdonald, President and CEO of Maritime adds, “This agreement provides Maritime with a twelve month exclusive period to evaluate the Nugget Pond Gold Plant in further detail for potential future processing of Hammerdown mineralization. The gold circuit is currently idle and was operated in the past by Richmont Mines, processing feed from the former Nugget Pond and Hammerdown gold mines with gold recoveries of over 95%. Our recently completed PEA outlined an attractive case for a potential re-start the Hammerdown gold project with an average of 69,500 ounces annual production over the first five years and strong after-tax economics including $111.3M NPV5% and 50.5% IRR at a gold price of US$1,375/oz).” (See press release dated February 29, 2020.)
Source: Company Press Release