ONTARIO – Yesterday, Rubicon Minerals Corp. announced a bought deal, flow-through offering of 11.7 million shares at C$1.28 each. Today, March 18, the company announced that the number of shares has been increased to 19.6 million, making the deal worth to C$25.1 million. And there is an overallotment that would bring the total to more than C$30.2 million.
Rubicon intends to use the proceeds of the offering on eligible exploration expenses, primarily at its Phoenix gold project in the Red Lake district. The project is fully permitted, and production is expected in the middle of this year. The underground mine an mill will have an initial ore output of 1,250 t/d.
The Phoenix project is to produce 165,300 oz of gold annually at an all-in sustaining cost of US$879 per oz. The diluted head grade to the mill has been conservatively estimated at 8.1 g/t Au. The most recent resource estimate (at 4.0 g/t cut-off) includes 4.12 million indicated tonnes grading 8.52 g/t Au and containing 1.13 million oz plus 7.45 million inferred tonnes at 9.26 g/t and containing 2.22 million oz of gold.
Please visit RubiconMinerals.com to see the newest corporate presentation that includes a three-year projected production plan and other details.