TORONTO (miningweekly.com) – Rubicon Minerals, hoping to build a gold mine next to one of Canada’s biggest, took advantage of the run-up in its share price so far this year, announcing a C$200.9-million bought deal financing.

The cash will go towards building the Phoenix gold project, the cost of which a June scoping study estimated to be C$214-million for a 180 000 oz/y mine, with first output pencilled in for late 2013.

Rubicon already had C$66-million at the end of December, after midtier gold producer Agnico-Eagle Mines in July 2011 bought a 9.2% stake in the company for C$70-million.

As part of the financing, Rubicon agreed with a syndicate of underwriters to sell 49-million shares for C$4.10 each, with the option for an overallotment of 7.35-million shares, which would raise the total to C$231-million if fully exercised.

The Phoenix project is located next to Goldcorp’s Red Lake mine in northern Ontario, which produced 703 300 oz in 2010.

Shares in Rubicon Minerals dipped 4.5% lower on Monday to trade at $4.08, valuing the company at C$970.8-million.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.