Rubicon - $8 million bought deal:
Arranges $8,000,000 Bought Deal Underwritten Financing
8/8/03
David W. Adamson, President and CEO of Rubicon
Minerals Corporation (RMX.TSXV) is pleased to
announce that the Company has agreed to sell
4,761,904 non flow through Units and 2,400,000 Flow
Through Shares on a bought deal underwritten basis for
gross proceeds of $8,000,000. The Underwriter has
informed the Company that the book for the private
placement has been filled and that it has been taken
down by institutional subscribers.
The non-flow through units will be sold at a price of $1.05 per unit and each unit is comprised of one
common share and one non-transferable common share purchase warrant. Each warrant will entitle the
holder to purchase one common share at a price of $1.25 for 24 months from closing. The warrants must
automatically be exercised within this period should the trading price of the Company's shares close at a
price equal to, or higher than $3.00 per share for a consecutive period of 30 trading days. The Flow
Through Shares will be sold at a price of $1.25 per share.
Haywood Securities Inc. ('Haywood') will act as underwriter and will be entitled to receive a 6.0% cash
commission and compensation options equal to 10% of the number of securities sold in the offering,
entitling Haywood to subscribe for common shares at a price of $1.05 per share exercisable for 24 months
from closing. In addition, Haywood has been granted an over-allotment option to cover potential
over-subscriptions of the offering for an additional $500,000 of the units. All of the securities will be
subject to a four month hold period in Canada following closing. Net proceeds of the financing will be used
to fund exploration on the Company's assets, including the McFinley Gold Project, Ontario and for general
working capital purposes. Combined with the net proceeds of this financing after closing, Rubicon's
working capital will be over $10 million. The private placement is subject to acceptance for filing by the
TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the 'US Securities Act') or any state securities laws and may not be
offered or sold within the United States or to US Persons unless registered under the US Securities Act
and applicable state securities laws or an exemption from such registration is available.
Rubicon controls a major land position in the prolific Red Lake gold camp including the McFinley Gold
Project (100% Rubicon) and an extensive land package optioned out to AngloGold. Rubicon also realizes
cash flow from its royalty division, largely centred on the Red Lake District, estimated this year to be
approximately $670,000 in gross proceeds cash plus share value. Outside of the Red Lake camp, the
Company has extensive gold property holdings in Newfoundland. Prior to this financing, Rubicon had 29
Institutional shareholders including most Canadian gold funds. Institutional shareholdings accounted for
approximately 25% of the issued and outstanding shareholdings of the company.
All dollars in this release are in Canadian funds.
RUBICON MINERALS CORPORATION
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.
CONTACT: TEL: 1-866-365-4706 Rubicon Minerals Corporation
Bill Cavalluzzo, VP Investor Relations
EMAIL: bcavalluzzo@rogers.com
INTERNET: www |
