Rubicon Minerals Corporation (“Rubicon Minerals”) announced the closing of a non-brokered private placement of com-mon shares, pursuant to which Agnico-Eagle Mines Limited (“Agnico-Eagle”) made a strategic investment of $70,000,000 in Rubicon Minerals.
At closing, Rubicon Minerals issued a total of 21,671,827 common shares to Agnico-Eagle at $3.23 per common share, for proceeds to Rubicon Minerals of approximately $70,000,000. As a result of the private placement, Agnico-Eagle now owns 9.2 per cent of the issued and outstanding shares of Rubicon Minerals.
Agnico-Eagle has also been granted rights that allow it, at its election, to participate in certain subsequent issuances by Rubicon Minerals in order to maintain its level of ownership in Rubicon Minerals.
The proceeds will be used for additional drilling, studies, testing and other development work in connection with the F2 Gold System at the Phoenix Gold Project of Rubicon Minerals.
The Phoenix Gold Project is located in the company's Red Lake gold camp in northwestern Ontario.
Rubicon Minerals was represented by Davis LLP with a team led by David Reid and including Ruby Chan and Alic Owaisi.
Agnico-Eagle was represented by Patricia Olasker and Rob Murphy of Davies Ward Phillips & Vineberg LLP.