Rubicon arranges $75.07-million bought deal
Rubicon Minerals Corp(C:RMX)
Shares Issued 192,769,714
Last Close10/21/2009 $4.77
Thursday October 22 2009 - News Release
Mr. David Adamson reports
RUBICON MINERALS ANNOUNCES $75 MILLION BOUGHT DEAL FINANCING
RubiconMinerals Corp. has entered into an agreement with a syndicate ofunderwriters, co-led by GMP Securities LP and TD Securities Inc. andincluding Research Capital Corporation, Macquarie Capital MarketsCanada Ltd., BMO Nesbitt Burns Inc., Dundee Securities Corporation,Sandfire Securities Inc., Thomas Weisel Partners Canada Inc., which hasagreed to purchase, on a bought deal basis, 16.5 million common sharesof the company at a price of $4.55 per share, for gross proceeds of$75,075,000. The underwriters will also have the option, exercisable inwhole or in part at any time up to 30 days after the closing of theoffering, to purchase up to an additional 2,475,000 shares. In theevent that the option is exercised in its entirety, the gross proceedsof the offering will be $86,336,250.
The company plans to use thenet proceeds from the offering to advance the development of thePhoenix gold project, working capital and general corporate purposes.
"Basedon positive results to date from the F2 gold zone, Rubicon has taken aclose look at its objectives for next year and proposes an aggressiveprogram of at least 120,000 metres of drilling on the zone includingsecuring underground access to parts of the F2 gold system. It is thusboth necessary and prudent to supplement our current treasury to ensurethat we maximize the potential of the F2 gold project," said DavidAdamson, president and chief executive officer of Rubicon.
Theshares will be offered by way of a short-form prospectus to be filed inall of the provinces of Canada (other than the province of Quebec)pursuant to National Instrument 44-101 short-form prospectusdistributions and in the United States on a private placement basispursuant to an exemption from the registration requirements of theUnited States Securities Act of 1933, as amended.
The offering isscheduled to close on or about Nov. 12, 2009, and is subject to certainconditions including, but not limited to, the receipt of all necessaryapprovals including the approval of the Toronto Stock Exchange and thesecurities regulatory authorities.
? 2009 Canjex Publishing Ltd.
