TSX: RMX | OTCQX: RBYCF
TORONTO, Nov. 11, 2019 /CNW/ - Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) ("Rubicon" or the "Company") announces that it has filed its interim Financial Statements and Management's Discussion and Analysis ("MD&A") for the three-month period ended September 30, 2019. The Company confirms that copies of these interim filings can be obtained at www.rubiconminerals.com or under the Company's profile at www.sedar.com.
(This news release contains forward-looking information about potential future results and events. Please refer to the Cautionary Statements at the end of this this news release.)
Highlights from the three-month ended September 30, 2019
- Cash position: As of September 30, 2019, the Company had cash and cash equivalents and short-term investments of approximately C$6.1 million.
On October 10, 2019, the Company closed a marketed private placement financing of 12,000,000 common shares of the Company at a price of C$1.00 per Common Share for aggregate gross proceeds to the Company of approximately C$12.0 million. The proceeds from the offering will be used for exploration and development expenditures at Rubicon's Phoenix Gold Project (the "Project") and general corporate purposes.
On July 29, 2019, the Company closed a non-brokered private placement financing of 6,883,116 common shares of the Company at a price of C$0.77 per Common Share for aggregate gross proceeds to the Company of approximately C$5.3 million. The proceeds from the offering will be used for working capital and general corporate purposes. A majority of the Rubicon Board of Directors (the "Board") and management team participated in the offering.
- Exploration and evaluation expenditures: For the three-month period ended September 30, 2019, the Company spent approximately C$2.0 million in expenditures related to drilling, maintenance and technical consulting fees. Expenditures were lower by C$2.9 million compared to Q3/2018 when the Company was ramping up spending on the mill facility for the duration of the bulk sample processing program.
- General and administrative expenses (including salaries and benefits, and consulting and professional fees): The Company spent approximately C$1.5 million on expenditures related to general and administrative, salaries and benefits, and consulting and professional fees in Q3/2019 in line with spending compared to Q3/2018.
As of November 8, 2019, the Company had cash and cash equivalents of approximately C$15.9 million. In management's view, the Company has sufficient financial resources to carry out the Company's planned activities for the remainder of 2019 and much of 2020 as follows:
- Updated Mineral Resource Estimate to be delivered end of 2019 to early 2020: The Company has completed more than 14,000 m of orientated infill drilling on the Project. Data from the drilling has been submitted to Rubicon's external consultants for the preparation of an updated Mineral Resource estimate. The goal of the infill drilling program is to expand the Measured and Indicated Resource estimate to more than 750,000 ounces of gold, which Rubicon believes, along with additional feasibility work, is required to advance the Project to a Feasibility Study-level. Rubicon anticipates the delivery of an updated Mineral Resource estimate by the end of 2019 to early 2020.
- Feasibility Study anticipated for Q3/2020: If the Company successfully expands the Measured and Indicated Mineral Resource estimates, Rubicon will proceed with developing a life of mine plan and completing the additional feasibility work on the Project. The Company has commenced feasibility work on surface infrastructure upgrades (tailings management facility and ammonia treatment plant, additional buildings, etc.) and gathering quotes for equipment. Completion of the feasibility work is anticipated for Q3/2020.
- Exploration Targets: Within the Phoenix Gold Property claim boundary, the Company has identified exploration targets within 2 kilometres from the Project shaft and surface infrastructure, which the Company intends to explore in 2020. Rubicon believes these targets have strong mineral potential based on historical mining and exploration.
Please refer to our interim Financial Statements and MD&A for the quarter-ended September 30, 2019 for further details.
About Rubicon Minerals Corporation
Rubicon Minerals Corporation is an advanced gold exploration company that owns the Phoenix Gold Project, located in the prolific Red Lake gold district in northwestern Ontario, Canada. Additionally, Rubicon controls the second largest land package in Red Lake consisting of over 285 square kilometres of prime, strategic exploration ground, and more than 900 square kilometres of mineral property interests in the emerging Long Canyon gold district that straddles the Nevada-Utah border in the United States. Rubicon's shares are listed on the Toronto Stock Exchange (RMX) and the OTCQX markets (RBYCF). For more information, please visit our website at www.rubiconminerals.com.
RUBICON MINERALS CORPORATION
George Ogilvie, P.Eng.
President, CEO, and Director
Cautionary Statement regarding Forward-Looking Statements and other Cautionary Notes
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including but not limited to any information as to the future performance of the Company, constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "advance", "anticipates", "believes", "estimate", "exploration", "future", "goal", "if", "intends", "may", "outlook", "planned", "potential", "project", "risk", "study", target", "view" and "will", or variations of such words, and similar such words, expressions or statements that certain actions, events or results could, may will or may (or not) be achieved or occur in the future. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect.
Forward-looking statements include, but are not limited to, statements regarding Mineral Resource estimates, mine plans including life of mine plans, Project feasibility and feasibility work, the anticipated outcome of oriented infill and other drilling of the Project, the potential tonnage of mineralized material and its grade from the Project, the impact of the data from the 2019 drilling program, the potential to improve the quantities and classification of Mineral Resource estimates, and future mining, and the understanding of the structural geology including at depth.
Forward-looking statements are made as of the date of this news release, based on the expectations, assumptions, opinions and estimates of management as of the date such statements are made, which management considers reasonable, and represent management's best judgment. If such expectations, assumptions, opinions and estimates prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors which may cause Rubicon's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: possible variations in mineralization, grade or recovery or throughput rates; uncertainty of Mineral Resource estimates; inability to realize exploration potential, mineral grades and mineral recovery estimates; actual results of exploration activities; uncertainty of future operations, delays in completion of exploration plans for any reason including insufficient capital, delays in permitting, and labour issues; continuation and conclusions of future economic or geological evaluations; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of the mining industry; delays and other risks related to operations; timing, receipt and maintenance of permits and other required regulatory approvals; the ability of Rubicon and other relevant parties to satisfy regulatory requirements; the ability of Rubicon to comply with its obligations under material agreements including financing agreements; the availability of financing for proposed programs and working capital requirements on reasonable terms; the ability of third-party service providers to deliver services on reasonable terms and in a timely manner; risks associated with the ability to retain key executives and key operating personnel; cost of environmental expenditures and potential environmental liabilities; dissatisfaction or disputes with local communities including First Nations Communities; failure of plant, equipment or processes to operate as anticipated; market conditions and general business, economic, competitive, political and social conditions; our ability to obtain adequate financing to fund our capital expenditures and working capital needs and meet our other obligations; the volatility of our stock price; the ability of our common stock to remain listed and traded on the TSX; and the "Risk Factors" in the Company's annual information form dated March 22, 2019 ("2019 AIF"). The foregoing list of assumptions, risks, uncertainties and other factors is not exhaustive. The foregoing list of assumptions, risks, uncertainties and other factors is not exhaustive. The forward-looking statements contained or incorporated by reference herein are expressly qualified by this cautionary statement as well as those in other continuous disclosure documents of the Company filed under its profile at www.sedar.com including, but not limited to, the 2019 AIF. Forward-looking statements contained herein are made as of the date of this news release and Rubicon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred Mineral Resources
This news release uses the terms "Measured" and "Indicated" Mineral Resources and "Inferred" Mineral Resources. The Company advises U.S. investors that while these terms are recognized and required by the Canadian Securities Administrators, they are not recognized by the United States Securities and Exchange Commission (SEC). The estimation of "Measured" and "Indicated" Mineral Resources involves greater uncertainty as to their existence and economic feasibility than the estimation of Proven and Probable Reserves. The estimation of "Inferred" Mineral Resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of Mineral Resources. It cannot be assumed that all or any part of a "Inferred", "Measured", or "Indicated" Mineral Resource estimate will ever be upgraded to a higher category.
Under Canadian rules, estimates of "Inferred Mineral Resources" may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment (or PEA) under certain circumstances. The SEC normally only permits issuers to report mineralization that does not constitute "Reserves" as in-place tonnage and grade without reference to unit measures. Under U.S. standards, mineralization may not be classified as a "Reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the Reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a "Inferred", "Measured" or "Indicated" Mineral Resource estimate exists or is economically or legally mineable. Information concerning descriptions of mineralization and Mineral Resources contained herein may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
SOURCE Rubicon Minerals Corporation
For further information: Allan Candelario, CFA, Director, Investor Relations and Corporate Development, Phone: +1 (416) 766-2804 | E-mail: [email protected] | www.rubiconminerals.com, Rubicon Minerals Corporation | Suite 830-121 King St. W. | Toronto ON, CANADA M5H 3T9