Readers of this blog are very familiar with U.S. Gold (NYSE:UXG), the company run by former Goldcorp (NYSE:GG) CEO Rob McEwen. However, McEwen also owns over 32% of another junior mining company, Rubicon Minerals (RBY).
Earlier this year, McEwen invested another $10 million investment in Rubicon, purchasing 14,285,714 shares at a price of $0.70 and also receiving as part of the deal 7,142,857 two-year warrants with a strike price of $1.50. The stock price has more than tripled since then, generating phenomenal returns for McEwen and the institutional investors who joined him.
Shares have been boosted in large part by a series of positive exploration results for Rubicon’s projects in Red Lake, Ontario (and hereand here) and Alaska. I don’t know enough about the company yet to formulate an opinion, and I am hesitant to chase such a strong move. So for the time being, I will keep an eye on Rubicon from the sidelines. If you have an opinion on Rubicon, please leave a comment here or drop me an email.
DISCLOSURE: Long UXG, no position in RBY.
RBY 1-yr. chart: