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  • Maritime Resources (MAE) has signed a letter of intent with Rambler Metals & Mining to buy the Nugget Pond gold plant in Newfoundland
  • As consideration, Maritime will pay C$2.57 million to Rambler and will issue $500,000 in common shares
  • In addition to the plant, the deal also includes Lac Pelletier gold property in Quebec, as well as a small portfolio of royalty interests
  • The transaction is expected to close in the first quarter of next year
  • Maritime Resources is currently up 12 per cent to $0.14 per share

Maritime Resources (MAE) has signed a letter of intent with Rambler Metals & Mining to buy the Nugget Pond gold plant in Newfoundland.

According to the terms of the agreement, the Toronto-based company will pay C$2.57 million in cash to AIM-listed Rambler, along with a package of shares valued at $500,000 based on the 30-day volume weighted average share price upon closing of the deal.

Located on the Baie Verte Peninsula to the northeast of the province, the Nugget Pond facility includes an existing carbon-in-pulp leach plant that last operated in 2012, and was previously used to process ore from the Hammerdown mine with high gold recoveries of around 97 per cent.

Maritime says it plans to complete a feasibility study to assess how best to operate the Nugget Pond plant, which sits within an active copper processing and tailings storage complex currently operated by Rambler, without any impact on third-party operations.

In addition to the gold plant, the deal also includes the Lac Pelletier gold property, located in Quebec roughly five kilometres south of Glencore’s Horne smelter and three kilometres north of the Cadillac Larder-Lake Break in the Abitibi Greenstone Belt.

Maritime will also receive a small package of royalty interests, including a 2 per cent royalty on the Gold Hawk property and a 1 per cent royalty on the Valdora property, both of which are located near the city of Val-d’Or, Quebec.

“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 Garett Macdonald, President and CEO of Maritime Resources.

“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 added.

The transaction is expected to close in the first quarter of next year.

Maritime Resources is currently up 12 per cent to $0.14 per share at 1:51pm EST.

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