Rubicon Minerals has announced an C$8 million flow-through bought deal, upsized from C$6 million previously, led by Cormark Securities. Rubicon will now issue 5.6 million common shares at C$1.43 per share with the underwriters having the option to purchase up to an additional 694,000 flow-through shares, with closing expected around Feb. 27.
Proceeds will be used for exploration at the Phoenix gold project, at the near-mine McFinley zone and at the Pen zone, as well as for regional exploration targets. At 288 sq. km, Rubicon holds 40% of claims in the Red Lake area. In January, Rubicon released an updated resource estimate for Phoenix with 811,000 oz. of gold in the measured and indicated category and 464,000 of inferred ounces.
The company has started a feasibility study using the measured and indicated resource ounces and expects it to be completed in the second half of the year. Rubicon is also working on infill drilling in the first half of this year to upgrade up to 190,000 oz. of inferred resources. The current resource is contained within the F2 gold zone.
(This article first appeared in the Canadian Mining Journal)