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Rubicon Minerals Closes $200.9 Mln Bought Deal Financing

Rubicon Minerals Corp. (TSE:RMX) said Wednesday it has closed a $200.9 million bought deal equity financing, the bulk of which will go toward advancing its Phoenix Gold project.

The gold explorer sold 49 million common shares for $4.10 each. GMP Securities and TD Securities were co-lead underwriters.

The underwriting syndicate also included UBS Securities Canada, Mackie Research Capital Corp., Scotia Capital and NCP Northland Capital Partners.

Rubicon said it plans to use the proceeds to advance the development of its Phoenix Gold project, as well as for working capital and general corporate purposes.

Rubicon controls over 100 square miles of exploration ground in the prolific Red Lake gold district of Ontario, which hosts Goldcorp's (TSE:G) high-grade Red Lake Mine.

Last June, the company received results from a preliminary economic assessment on its F2 Gold System, part of the Phoenix project, that indicated cash costs as low as US$214 per tonne of processed material.

The report, prepared by AMC Mining Consultants, estimated the F2 System will produce 180,000 ounces of gold per year in the base case scenario over a life of 12 years, with production rates of 1,250 tonnes per day.

This, according to the study, would yield a net present value of $433 million, at a five percent discount rate, and a pre-tax 28 percent internal rate of return, with a payback period of 3.3 years from the start of production.

These base case results were calculated using a gold price of $1,100 per ounce, the company said, and increase when using a higher, spot gold price.