Ruby App works with webrick but not with passenger - nginx

Question

I'm trying to deploy a ruby app to a server running Ubuntu -> Nginx -> Passenger.
I can access the site fine using 'rails s' however passenger keeps returning the bellow error into the nginx log. I've checked that rake 12.0.0 is installed and also tried setting up a new rails project to check if passenger would provide the "your on rails" page. But that doesn't work either.
Any help would be greatly appreciated, I've tried googleing and performing various bundle updates and gem installs.
Error ID: a06f05a9
Error details saved to: /tmp/passenger-error-EVNeAF.html
Message from application: <p>It looks like Bundler could not find a gem. Maybe you didn't install all the gems that this application needs. To install your gems, please run:</p>
<pre class="commands">bundle install</pre>
<p>If that didn't work, then the problem is probably caused by your application being run under a different environment than it's supposed to. Please check the following:</p>
<ol>
<li>Is this app supposed to be run as the <code>dmn</code> user?</li>
<li>Is this app being run on the correct Ruby interpreter? Below you will
see which Ruby interpreter Phusion Passenger attempted to use.</li>
<li>Please check whether the correct RVM gemset is being used.</li>
<li>Sometimes, RVM gemsets may be broken.
Try resetting them.</li>
</ol>
<p>-------- The exception is as follows: -------</p>
Could not find rake-12.0.0 in any of the sources (Bundler::GemNotFound)
<pre> /home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/spec_set.rb:87:in `block in materialize'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/spec_set.rb:81:in `map!'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/spec_set.rb:81:in `materialize'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/definition.rb:159:in `specs'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/definition.rb:218:in `specs_for'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/definition.rb:207:in `requested_specs'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/runtime.rb:109:in `block in definition_method'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/runtime.rb:21:in `setup'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler.rb:101:in `setup'
/home/dmn/.rvm/gems/ruby-2.3.3/gems/bundler-1.15.4/lib/bundler/setup.rb:19:in `<top (required)>'
/home/dmn/.rvm/rubies/ruby-2.3.3/lib/ruby/site_ruby/2.3.0/rubygems/core_ext/kernel_require.rb:55:in `require'
/home/dmn/.rvm/rubies/ruby-2.3.3/lib/ruby/site_ruby/2.3.0/rubygems/core_ext/kernel_require.rb:55:in `require'
/usr/lib/ruby/vendor_ruby/phusion_passenger/loader_shared_helpers.rb:430:in `activate_gem'
/usr/lib/ruby/vendor_ruby/phusion_passenger/loader_shared_helpers.rb:297:in `block in run_load_path_setup_code'
/usr/lib/ruby/vendor_ruby/phusion_passenger/loader_shared_helpers.rb:435:in `running_bundler'
/usr/lib/ruby/vendor_ruby/phusion_passenger/loader_shared_helpers.rb:296:in `run_load_path_setup_code'
/usr/share/passenger/helper-scripts/rack-preloader.rb:100:in `preload_app'
/usr/share/passenger/helper-scripts/rack-preloader.rb:156:in `<module:App>'
/usr/share/passenger/helper-scripts/rack-preloader.rb:30:in `<module:PhusionPassenger>'
/usr/share/passenger/helper-scripts/rack-preloader.rb:29:in `<main>'</pre>"