Vancouver — Holding some 300-sq.-km of prospective ground in the prolific Red Lake mining camp of Ontario, junior Rubicon Minerals (RMX-V) aims to raise up to $1.2 million by selling a combination of flow-through and non-flow through shares.
The best-effort financing, headed up by Dundee Securities and Haywood Securities, includes 1.43 million non-flow through units priced at 35 each. One unit consists of a share and half a warrant; a whole warrant is exercisable at 45 for a one-year period. The $500,000 will be used for general working capital.
The second private placement includes 2 million flow through shares priced at 35 each. Rubicon plans to use the $700,000 to diamond drill its Red Lake gold properties that are not covered under a joint venture deal with AngloGold (AU-N).
The world’s largest gold producer has agreed to fund a 1,500-metre drill program over Rubicon’s Slate Bay target as part of last year’s deal that would see AngloGold earn a 60% interest in the Red Lake project by spending US$3 million over five years. AngloGold can then up its stake to 70% by paying Rubicon US$250,000.
Located some 11 km west-northwest of Goldcorp’s (G-T) Red Lake mine, the partners are planning to test an area where chip sampling returned 3.44 grams gold per tonne over 21.85 metres, including 5.6 grams gold over 6.1 metres. Channel sampling returned 1.14 grams gold over 36.93 metres. Mineralization occurs in disseminated and veined pyrite with minor chalcopyrite associated with sheeted quartz veins near a contact with a large intrusive body. An earlier geophysical survey outlined a 2-km-by-500-metre induced polarization anomaly over the zone.
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