Rupert Resources Ltd. [RUP-TSXV; RUPRF-OTC; R05-FSE] has closed the previously announced concurrent equity financings, raising a total of $48,654,000 before expenses. The financings comprised two components: a bought deal equity offering and a private placement with existing shareholders, including Agnico Eagle Mines Ltd. [AEM-TSX, NYSE].
James Withall, CEO of Rupert Resources, said: “The financings were well supported by our existing shareholders and a number of high-quality new institutions. The funds enable the company to progress the Ikkari discovery [at Pahtavaara project] through the maiden mineral resource estimate and economic evaluation stages whilst, most importantly, continuing our exploration that aims to demonstrate extensions to Ikkari and delineate the potential of Rupert’s other discoveries made in area 1 and the Pahtavaara mine. Rupert’s regional program to generate and drill new targets on this very prospective property package of over 450 km2 will continue in parallel.”
A total of 5,658,000 common shares in the capital of the company were issued under the public offering at a price of $5.30 per common share for gross proceeds of approximately $29,987,400, which includes the exercise, in full, of the underwriter’s overallotment option of 738,000 common shares. The public offering was conducted by BMO Capital Markets and Cormark Securities, as lead underwriters, and Canaccord Genuity Corp., Eight Capital and Scotia Capital Inc.
The public offering was completed pursuant to a short form prospectus dated June 1, 2021, in British Columbia, Alberta, Ontario, and Newfoundland and Labrador and in the United States on a private placement basis. The public offering and the private placement remain subject to the final approval of the TSX Venture Exchange.
Rupert Resources also issued 3,522,000 common shares at the offering price in a concurrent private placement on substantially the same terms as the public offering for gross proceeds of $18,666,600, which includes 442,000 common shares pursuant to the option granted to the private placement participants to purchase additional common shares representing up to 15 per cent of the number of common shares subscribed by each of them.
Agnico Eagle exercised its participation right to subscribe for 917,302 common shares, retaining a 15.40% interest in the company on a partially diluted basis (when including the 11,543,704 warrants exercisable at $1 per common share acquired by Agnico Eagle in February, 2020, as previously disclosed).
Net proceeds of the public offering and the private placement will be used for continuing exploration expenditures on the company’s properties in Finland and for general corporate purposes.
Rupert Resources owns the Pahtavaara gold mine, mill, and exploration permits and concessions in the Central Lapland greenstone belt, northern Finland. Pahtavaara previously produced over 420,000 ounces of gold and 474,000 ounces of gold remain in an Inferred Resource (4.6 million tonnes of 3.2 g/t gold at a cut-off grade of 1.5 g/t gold.
The company also holds a 100% interest in the Hirsikangas propert , central Finland, a 100% interest in the Surf Inlet property, British Columbia, and a 20% carried participating interest in the Gold Centre property located adjacent to the Red Lake mine, Ontario.