JOHANNESBURG (miningweekly.com) – Aim- and TSX Venture Exchange-listed Rambler Metals & Mining has agreed to sell a portion of the life-of-mine gold production from its Ming copper/gold mine, in Canada, to Sandstorm Resources for $20-million.

Sandstorm would make staged upfront cash payments to Rambler, in exchange for gold production once the mine, which is situated in the Baie Verte Peninsula of Newfoundland and Labrador, started operating.

The first $5-million payment was made immediately, with a second payment of $2-million payable on the completion and delivery of a feasibility study at the project by the second quarter of this year.

The balance of $13-million would be payable once the required permits for the mine were awarded by the third quarter of this year.

In return, Sandstorm Resources would be entitled to 25% of the first 175 000 oz of payable gold and thereafter 12% of all payable gold produced from the Ming mine.

Last year, Sandstorm agreed to buy 17% of the life-of-mine gold production from Luna Gold’s Aurizona project, in Brazil, and signed another deal to acquire 20% of the gold produced at SilverCrest Mines’ Santa Elena project, in Mexico.

“We are extremely pleased to have signed this agreement with Sandstorm Resources. The agreement represents an attractive source of funding for Rambler, allowing us to bring the Ming mine into production while still giving Rambler shareholders full upside exposure to 100% of the copper, silver and the majority of the gold production at the Ming mine,” Rambler CEO George Ogilvie said in a statement.

The agreement would be valid for 40 years and could be renewed by Sandstorm for further successive ten-year periods.

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