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Rupert Resources raises $40m for exploration in Finland

Pahtavaara gold project. Credit: Rupert Resources

Rupert Resources (TSXV: RUP) has closed a pair of concurrent equity financings, raising a total of C$48.7 million (approximately $40.2 million). The company intends to use the net proceeds for ongoing exploration in Finland and for general corporate purposes.

Rupert issued 5.7 million common shares at a price of C$5.30 each in a public offering to raise C$30 million. It also issued 3.5 million shares at the same price for gross proceeds of C$18.7 million in a private placement with existing shareholders, including Agnico Eagle Mines (TSX: AEM; NYSE: AEM). The total amounts of both offerings included over-allotments.

The company owns the former Pahtavaara gold mine and mill which produced 450,000 oz. of gold. It is in the Central Lapland Greenstone Belt, as is Agnico’s Kittila gold mine (the largest such mine in Europe). Drilling is currently focused on defining underground resources, particularly at depth.

The company has also made six new gold discoveries about 20 km to the west of the Pahtavaara mine. Perhaps the most important is Ikkari where the strike length has been traced for 650 metres on 80-metre drill centres, and the deposit is open in all directions. Metallurgical testing of samples from Ikkari indicate gold recoveries of 95% to 99%. A resource estimate is due this summer.

(This article first appeared in the Canadian Mining Journal)