The Rambler Metals and Mining PLC (LON: RMM) share price plunged 12.5% after raising £3.8 million (approx. US$5.2 million) via a discounted share placement valuing each new share at 26.5p.
Today’s decline reflected the markest adjusted value for Rambler Metals shares following the capital raise that saw the company issue about 14.46 million new shares diluting existing shareholders.
The mining company intends to use £2.4 million (US$3.2 million) to expand its underground mining operation while the remaining £1.4 million (US$2.0 million) will be used for working capital purposes.
Rambler Metals intends to expand its underground mining operation to a sustained output of 1,350 tpd at 2% copper, which puts it firmly on track to reach full mine production by the end of Q1 2022.
Toby Bradbury, Rambler Metals CEO, commented: “We are pleased to receive significant support from investors, who are clearly interested in exposure to an operation that is poised to make positive steps forward in 2022. The now completed Lower Footwall Zone (“LFZ”) 2nd egress raise means production activities have recommenced in earnest in the highest-grade areas of the underground mine, and we anticipate that we will be doubling our payable copper metal output to 7,000 tonnes Cu in 2022 from 3,418 tonnes in 2021.”
“As I write this, a long-hole production drill is set up and drilling in the first scheduled stope in the LFZ between 735 and 760 levels. This mining horizon will be followed in turn by the Upper Footwall Zone (“UFZ”) between 770 and 790 levels. The Ming North Zone (“MNZ”) cut and fill access development has already entered the ore zone, and we are seeing good grades coming out of that area… Altogether, we now have 4 mining horizons from which to draw material to feed the mill, which is what we have been working toward through 2021.”
Despite today’s decline, Rambler Metals has extremely positive fundamentals given that, unlike many junior mining companies, it generates revenues. In addition, it plans to expand its production capacity in Q1 2022.
The miner also conducted an extensive in-fill drilling campaign at its license area, leading to updated copper mineral resource estimates, which added 19,000 tonnes of in-situ copper in various categories.
Rambler Metals shares have fallen 30.86% since the year started and are pretty attractive at current prices given their solid prospects.
*This is not investment advice. Always do your due diligence before making investment decisions.
Rambler Metals share price.
Rambler Metals share price plunged 12.48% to trade at 27.35p, falling from Wednesday’s closing price of 31.25p.
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