News:
Rubicon Acquires Rights To Large Portfolio Of Property
Interests In Red Lake District, Ontario
Symbol: RMX U/RUBIF
Industry: MNG
Subject: NWS
NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: RUBICON MINERALS CORPORATION
TSX VENTURE SYMBOL: RMX
OTC Bulletin Board SYMBOL: RUBIF
MARCH 10, 2003
Rubicon Acquires Rights To Large Portfolio Of Property Interests
In Red Lake District, Ontario
VANCOUVER, BRITISH COLUMBIA--
- Royalty interests, cash plus share payments and payback projected within
two years -
David W. Adamson, President and CEO of Rubicon Minerals Corporation
(RMX.TSX Venture) is pleased to announce that the Company has acquired
rights to property and contractual interests in a portfolio of 63 mineral
properties, mainly in the Red Lake district of Ontario, from
prospector/entrepreneur Perry English. The terms of the acquisition grant
to Rubicon certain rights to all payments, receivable by English, from the
mineral properties. Currently, the properties are optioned to 21 different
exploration companies including Rubicon.
Scheduled cash and share payments on the package of optioned properties
exceed $580,000 in 2003, including more than $360,000 in cash payments.
The optioned properties are currently in various stages of exploration. In
addition to these payments, and to the extent a discovery is made and
production is realized from the properties, applicable royalties will then
be payable to Rubicon.
Highlights of the acquisition include:
* Portfolio includes 14 properties currently under option to Rubicon in
the Red Lake gold camp
* Scheduled 2003 option payments in cash of more than $360,000
* Scheduled 2003 option payments in shares valued at an estimated at
$220,000
* Rubicon acquires underlying agreements and royalties including those on
14 of its own projects
David Adamson states: "We have completed another step in our strategy to
control the major land package and to capitalize on opportunities in the
prolific Red Lake gold camp. Over the past six years, we have established
ourselves as the largest landholder in the Red Lake camp with over 268
square kilometres of land and quality exploration projects. With this
latest portfolio acquisition, we will control the underlying agreements to
properties optioned to several of our competitors. Our shareholders will
be exposed directly to drill-intensive exploration programs by Rubicon,
expected to total over 100,000 feet of drilling in 2003 and, indirectly,
to considerable exploration and drilling by many of our competitors."
Perry English is one of the most successful prospector/entrepreneurs on
the Canadian exploration scene. Over the last number of years, Mr. English
has consistently realized significant cash flow as well as share payments
as part of his option agreements to third parties. He has also been
granted royalties in properties located mainly in the Red Lake district of
Ontario, an area which has been the primary focus of exploration for
Rubicon for the past six years. As part of the acquisition, Mr. English
has agreed to provide exclusive services to Rubicon for a minimum of two
years during which time he will pursue additional property acquisitions
for the Company.
The property interests have been acquired, subject to regulatory approval,
for a cash payment of $500,000 and issuance of 250,000 shares of Rubicon.
In addition, Mr. English will be paid a total of $75,000 for each full
year of consultancy to the Company for a minimum of the next two years and
a further two years at his election. Mr. English will also be entitled,
for a period of six years, to a bonus on any annual gross income generated
by Rubicon from the property interests in excess of $150,000, payable as
follows: 10% for gross income between $150,000 and $300,000, 15% for the
subsequent $50,000 in gross income, 17.5% for the subsequent $100,000 in
gross income and 20% for the subsequent $400,000 of gross income, up to a
gross income of $850,000. Gross income generated from the property
interests is calculated on the basis of actual cash receipts plus, in
respect of future share receipts, 75% of deemed share value. Roman
Friedrich & Company, an independent financial advisor, provided financial
advice to Rubicon in connection with this transaction.
Except for existing Rubicon properties, certain of the acquired property
interests situated in the Red Lake gold camp may be subject to an area of
influence provision with AngloGold.
Rubicon Minerals Corporation is currently carrying out a 75,000 foot
exploration program on several properties within its 268 square kilometre
land holdings in the prolific Red Lake gold camp of Ontario. Included in
Rubicon's Red Lake holdings is the 100% controlled flagship McFinley Gold
Project, from which the Company has reported high-grade intercepts
including 21.26 oz/ton gold over 1.15 feet and 1.85 oz/ton over 1.96 feet.
RUBICON MINERALS CORPORATION
"David W. Adamson"
David W. Adamson, President & CEO
The statements contained in this release that are not historical facts are
forward-looking statements, which involve risks and uncertainties that
could cause actual results to differ materially from targeted results.
Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The Company relies upon litigation protection for
forward looking statements.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Rubicon Minerals Corporation
Bill Cavalluzzo
VP Investor Relations
(866) 365-4706
E-mail: bcavalluzzo@rogers.com
TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
INDUSTRY: MNG
SUBJECT: NWS
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End of News |
