Rubicon Minerals has secured a US $50-million loan from the Canada Pension Plan Investment Board to help finish development of its gold mine in Red Lake.
The Toronto miner announced May 14 that it had entered into a financing agreement with CPPIB Credit Investments, a subsidiary of Canada Pension Plan Investment Board.
The proceeds are earmarked for its Phoenix Gold Project during the ramp-up period and toward commercial production this year. The mine is permitted for projected initial production to 1,250 tonnes per day.
"We are pleased to announce that Canada Pension Plan Investment Board has chosen to invest in Rubicon," said Rubicon president-CEO Michael Lalonde. "Mill commissioning is now well advanced. We have begun processing low-grade mineralized material, which will continue through the remainder of the second quarter as we fine-tune the mill circuit. We remain on schedule for projected initial gold production in mid-2015."
The loan has a five-year term that will mature on May 12, 2020 with an annual cash interest rate of 7.5 per cent, compounded quarterly. The company has also issued 10,000,000 warrants to CPPIB.