Rupert raises $47.6 million for Finland projects
Rupert Resources Ltd. [RUP-TSXV] has raised $47.6 million from a non-brokered private placement transaction with proceeds earmarked for on-going exploration and development at the company’s properties in Finland.
Rupert said the private placement consisted of 10.1 million common shares priced at $4.70 per share. Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] exercised an option to subscribe for 1.52 million shares, in a move to retain its 14.9% stake in Rupert in a partially diluted basis.
News that the private placement has been completed came after the close of trading on February 27, 2023, when Rupert shares closed at $4.60. The shares are currently trading in a 52-week range of $6.77 and $3.53.
In a February 8, 2023, press release, the company said it has divested its Central Finland properties and participated in a financing in exchange for a 9.1% stake in Northgold AB, a company that trades on the Nasdaq North Growth Market Sweden under symbol NG.
Rupert recently announced results from a Preliminary Economic Assessment (PEA) for its 100%-owned Rupert Lapland Project, including the Ikkari gold discovery and Pahtavaara mine and mill located in northern Finland.
Ikkari is part of the Rupert Lapland Project, which also includes the Pahtavaara gold mine, mill, and exploration permits, plus concessions, which are located in the Central Lapland Greenstone Belt. Pahtavaara operated between 1996 and 2014, producing almost 450,000 ounces of gold, and still contains an inferred resource of 474,000 ounces, according to a NI 43-101 technical report released in April, 2018.
Rupert’s Finland properties are adjacent to Agnico-Eagle’s Kittila gold mining operations.
The PEA is described as a de-risking event that envisages an open-pit operation at Ikkari in the first 11 years, transitioning to Ikkari underground (years 10-23) and Pahtavaara concentrate (years 12 to 24).
The 22-year life of mine includes recovered gold of 4.25 million ounces with average annual production of 200,000 ounces and a total initial capital expenditure of US$404.6 million. The open pit operation is expected to support average annual production of 220,000 ounces in years one to 11.
Rupert says the operation will feature an expected lowest-quartile all-in-sustaining cost of US$759 an ounce over the life of mine, and US$596 per ounce during the open pit operation.
Rupert reported an updated Ikkari mineral resource estimate that is based on 73,000 metres of drilling to April, 2022. The estimate maintains the 2.5 g/t average grade initially reported in September, 2021 maiden resource estimate and upgrades 84% of the resource to the indicated category. Ikkari’s 100%-owned mineral resource is now reported to include 46.4 million tonnes at 2.5 g/t for 3.68 million indicated ounces and 11.8 million tonnes at 1.9 g/t for 710,000 inferred ounces.