Rambler defaults on gold repurchase agreement with Sandstorm

The AIM-traded company had struck an agreement in relation to production from its wholly-owned Ming Mine located in Newfoundland, Canada.

It said it had failed to deliver the required amount of gold for the last seven months, resulting in a default as defined in the agreement.

Rambler said it had 10 days from 16 February, to either deliver 958 ounces of gold, or make a cash payment of CAD 2.36m (£1.46m) to Sandstorm.

The two companies had agreed to enter discussions to find a solution to the default.

Rambler said the deal between the two companies was made in March and April last year, requiring it to deliver 1,150 ounces of gold over 18 months, in addition to $7m less payable gold delivered since 1 October 2021.

The company had so far delivered only 192 ounces of gold, leaving 958 ounces remaining to complete the terms of the agreement.

“At this stage there can be no guarantee that Sandstorm will agree to defer or reschedule the sale and delivery of gold pursuant to the agreement, or the terms on which any deferral will be agreed,” the board said in its statement.

“Accordingly, the company's financial position remains uncertain.

“In addition, Rambler remains in discussions with several groups as the company seeks to restructure its finances.”

Reporting by Josh White for Sharecast.com.