Rubicon Minerals Corporation
Rubicon Minerals Announces Filing of its Annual Financials for the Fiscal Year-Ended December 31, 2015
TORONTO, ONTARIO--(Marketwired - Mar 22, 2016) - Rubicon Minerals Corporation (TSX:RMX)(OTC PINK:RBYCF) ("Rubicon " or the "Company ") today announced that it has filed its Annual Information Form, audited Consolidated Financial Statements and related Management's Discussion and Analysis for the financial year ended December 31, 2015. The Company confirms that copies of Rubicon's annual financials can be obtained at www.rubiconminerals.com or www.sedar.com .
Outlook and Going Concern
The 2016 SRK Geological Model and Resource Estimate significantly decreased the tonnes, grade and ounces in the F2 Gold Deposit. More exploration is required at depth and along strike in order to potentially develop an economic mining operation at the Phoenix Gold Project (the "Project "). However, other than conducting desktop studies and preparing future exploration plans, Rubicon does not have any intentions to proceed with an exploration program in the immediate future. An exploration program would require the Company to secure additional funding. Rubicon continues to evaluate strategic alternatives for the benefit of the Company and its stakeholders and remains in discussions with its lenders and other parties.
As at December 31, 2015, the Company had negative working capital of C$179.9 million, including cash and cash equivalents of C$22.3 million. On February 12, 2016, the Company was in breach of a technical covenant of its Loan Facility as the Project did not meet processing requirements of 875 tonnes per day over a period of 60 consecutive days. On March 12, 2016, the breach of technical covenant became an event of default under the Loan Facility terms and conditions. The Company continues to be in discussion with its Loan Facility secured lender, CPPIB Credit Investments ("CPPIB "). However, there can be no assurance that CPPIB will not exercise any rights or remedies in relation to the event of default as outlined in the Loan Facility agreement.
The material uncertainties raise significant doubt as to the ability of Rubicon to continue as a going concern. The Company may be unable to realize on its assets or discharge its liabilities in the normal course of business. Rubicon may incur significant dilution to the holdings of existing shareholders in any restructuring and financing, or may be required to seek relief under a court-approved restructuring process.
Impairment and Liability Reclassification
The Company recognized an impairment loss of C$203.5 million related to property, plant, and equipment, and inventories in 2015. In addition, Rubicon has reclassified its Loan Facility, Gold Stream Facility, and Finance Lease Obligations, with balances of C$69.9 million, C$103.6 million, and C$11.5 million, respectively, from non-current liabilities to current liabilities as of December 31, 2015.
RUBICON MINERALS CORPORATION
Michael Winship, Interim President and Chief Executive Officer
Cautionary Statement regarding Forward-Looking Statements and other Cautionary Notes
This news release contains statements that constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "intends", "may", "will", "should", "plans", "anticipates", "potential", "expects", "estimates", "forecasts", "budget", "likely", "goal" and similar expressions or statements that certain actions, events or results may or may not be achieved or occur in the future. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements reflect our current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Forward-looking statements include, but are not limited to statements regarding the requirements needed to potentially develop an economic mining operation at the Project; Rubicon's intentions in respect of an exploration program; Rubicon's ability to realize on its assets or discharge its liabilities in the normal course of business; the possibility of Rubicon incurring significant dilution to the holdings of existing shareholders in any restructuring and financing; and the possibility the Company may be required to seek relief under a court-approved restructuring process.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable. If such opinions and estimates prove to be incorrect, actual and future results may be materially different than expressed in the forward-looking statements. The material assumptions upon which such forward-looking statements are based include, among others, that: the demand for gold and base metal deposits will develop as anticipated; the price of gold will remain at or attain levels that would render the Phoenix Gold Project potentially economic; that any proposed operating and capital plans will not be disrupted by operational issues, title issues, loss of permits, environmental concerns, power supply, labour disturbances, financing requirements or adverse weather conditions; Rubicon will continue to have the ability to attract and retain skilled staff; and there are no material unanticipated variations in the cost of energy or supplies.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rubicon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: possible variations in mineralization, grade or recovery or throughput rates; uncertainty of mineral resources, inability to realize exploration potential, mineral grades and mineral recovery estimates; actual results of current exploration activities; actual results of reclamation activities; uncertainty of future operations, delays in completion of exploration plans for any reason including insufficient capital, delays in permitting, and labour issues; conclusions of future economic or geological evaluations; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of the mining industry; delays and other risks related to operations; timing and receipt of regulatory approvals; the ability of Rubicon and other relevant parties to satisfy regulatory requirements;; the ability of Rubicon to comply with its obligations under material agreements including financing agreements; the availability of financing for proposed programs and working capital requirements on reasonable terms; the ability of third-party service providers to deliver services on reasonable terms and in a timely manner; risks associated with the ability to retain key executives and key operating personnel; cost of environmental expenditures and potential environmental liabilities; dissatisfaction or disputes with local communities or First Nations or Aboriginal Communities; failure of plant, equipment or processes to operate as anticipated; market conditions and general business, economic, competitive, political and social conditions.
Forward-looking statements contained herein are made as of the date of this news release and Rubicon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Readers are advised to carefully review and consider the risk factors identified in the Management's Discussion and Analysis for period ending December 31, 2015 under the heading "Risk Factors" for a discussion of the factors that could cause Rubicon's actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Readers are further cautioned that the foregoing list of assumptions and risk factors is not exhaustive and it is recommended that prospective investors consult the more complete discussion of Rubicon's business, financial condition and prospects that is included in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement
Cautionary Note to U.S. Readers Regarding Estimates of Indicated and Inferred Resources
This news release uses the terms "measured" and "indicated" mineral resources and "inferred" mineral resources. The Company advises U.S. investors that while these terms are recognized and required by Canadian securities administrators, they are not recognized by the SEC. The estimation of "measured", "indicated" and "inferred" mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. The estimation of "inferred" resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. It cannot be assumed that all or any part of a "measured", "indicated" or "inferred" mineral resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a "measured", "indicated" or "inferred" mineral resource exists or is economically or legally mineable. Information concerning descriptions of mineralization and resources contained herein may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimation of mineral resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral resource estimates may have to be re-estimated based on: (i) fluctuations in mineral prices; (ii) results of drilling and development; (iii) results of test stoping and other testing; (iv) metallurgical testing and other studies; (v) proposed mining operations, including dilution; (vi) the evaluation of mine plans subsequent to the date of any estimates; and (vii) the possible failure to receive required permits, approvals and licenses. The mineral resources in this news release were reported using Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards.
The content of this news release has been read and approved by Bill Shand, P.Eng., Vice President, Operations and Howard Bird, B.Sc. (Hons.), P.Geo., Vice-President, Exploration,. Both are Qualified Persons as defined by NI 43-101.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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