Rubicon Minerals breaches loan agreement processing average covenant

By Caroline Salls

Pittsburgh, Feb. 12 – Rubicon Minerals Corp. has breached a covenant in its $50 million secured loan agreement with Canada Pension Plan Investment Board wholly owned subsidiary CPPIB Credit Investments Inc., according to a company news release.

Specifically, Rubicon said the loan agreement requires it to process an average of 875 tons per day over a period of 60 consecutive days by Feb. 12.

Since the company has not been able to achieve this, it said the breach will become a default under the loan unless remedied within 30 days.

Although CPPIB has reserved its rights under the loan agreement, it told Rubicon on Thursday that it is supportive of the process of evaluating strategic alternatives and that it has no current intentions to exercise any rights or remedies.

Rubicon said it is advancing the process of evaluating strategic alternatives and has been working with its secured lenders and other parties to explore options to maximize value.

Operating activities at the company’s Phoenix Gold project, other than care and maintenance, remain suspended at this time, according to the release.

Based in Toronto, Rubicon is a gold producer.

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