Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) announces it has closed a non-brokered private placement financing of 6,883,116 common shares of the Company at a price of C$0.77 per Common Share for aggregate gross proceeds to the Company of approximately C$5.3 million. The Offering Price represents an approximate 2.53% discount to the market price of C$0.79 (based on the five-day volume weighted average trading price of the Common Shares following the close of markets on July 16, 2019) at the time the Company submitted its application to the Toronto Stock Exchange for price protection in connection with the Offering and in accordance with Toronto Stock Exchange policies.
The proceeds from the Offering will be used for working capital and general corporate purposes. Certain members from the Rubicon Board of Directors and management team have participated in the Offering.
George Ogilvie, P.Eng., President and Chief Executive Officer of Rubicon commented, “This financing shores up our balance sheet as we progress towards completion of the new Preliminary Economic Assessment for the Phoenix Gold Project and further advance the Project, including potentially towards a feasibility study. Certain members of the Board and management team, including myself, participated in this financing to further align our interests with the shareholders of the Company.”
George Ogilvie, President, Chief Executive Officer and director, Nicholas Nikolakakis, Chief Financial Officer and Corporate Secretary, Peter Jones, director, Aleksandra Bukacheva, director, David Palmer, director, and Dan Burns, director, participated in the Offering and acquired an aggregate of 64,000 Common Shares for C$49,280. The participation of these insiders in the Offering constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company has determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of securities issued to insiders nor the consideration paid by insiders exceeded 25 percent of the Company’s market capitalization. The Company did not file a material change report in respect of the transaction 21 days in advance of the closing of the Offering because insider participation had not been confirmed. The shorter period was necessary in order to permit the Company to close the Offering in a timeframe consistent with usual market practice for transactions of this nature.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Rubicon Minerals Corporation
Rubicon Minerals Corporation is an advanced gold exploration company that owns the Phoenix Gold Project, located in the prolific Red Lake gold district in northwestern Ontario, Canada. Additionally, Rubicon controls the second largest land package in Red Lake consisting of over 285 square kilometres of prime, strategic exploration ground, and more than 900 square kilometres of mineral property interests in the emerging Long Canyon gold district that straddles the Nevada-Utah border in the United States.
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