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Rubianna Resources Raises Funds For Gold Exploration

Rubianna Resources (ASX:RRE) is raising a total of $712,978 to fund the ongoing review, evaluation and exploration programs on its existing projects and to review new projects.

Separately, a $600,000 convertible note, exercisable at $0.07 per share, has been converted to 8,571,428 new shares.

This transfers a significant debt of the company to equity.

Capital Raising

Rubianna had received applications from professional and sophisticated investors for 17,000,000 new shares at an average issue price of $0.01 to raise $170,000.

It has also resolved to undertake a fully underwritten one for one non-renounceable rights issue of 108,595,605 shares priced at $0.005 each to raise $542,978.

In total, this equates to $712,978.

Proceeds from the entitlement offer will be used to review new projects as well as carry out ongoing review, evaluation and exploration programs on existing projects.

The offer is underwritten by Active Blue Pty Ltd.

Recent Drilling

The company had recently intersected gold at its Ruby Anna East prospect northeast of Meekatharra, Western Australia.

Results from the deep, broad spaced extensional drilling had included:

- 9 metres at 2.87 grams per tonne gold from 126 metres in RWRC0161; and
- 2 metres at 9.95 g/t Au from 14 metres, including 1m at 17.76 g/t Au from 141metres) in RWRC0196.

The regional exploration drill programme included a total of 63 RC drill holes for 5,703 metres designed to test extensions at depth to existing resources at Ruby Anna East, Golden Hope and Bloodstone.

This intersected the proposed target "quartz veining" as anticipated.

Analysis

The capital raising will allow Rubianna Resources to progress exploration of its projects including the prospective Ruby Anna East prospect, where drilling has intersected high grade gold.

Given the broad spaced drilling, there is substantial potential for further follow-up drilling.

Interestingly, the funds raised will also include a "review of new projects".

That a $600,000 convertible note has been converted to 8,571,428 new shares also removes a debt and transfers it to equity.

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