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Private Placement: Rugby Mining (TSXV:RUG)

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Rugby Mining is looking to raise gross proceeds of up to $2.5 million from the placement of up to approximately 20.8 million units (20,833,333) priced at $0.12 per unit. The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.20 for 18 months, subject to an acceleration clause.

Additional Information:

Company: Rugby Mining
Website: http://www.RugbyMining.com
Stock Symbol: TSXV: RUG
Date Published: Aug 25, 2021
Transcript: Available

Video Transcript:

I’m Katriina Cotton for Investmentpitch Media

Rugby Mining has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $2.5 million from the placement of up to approximately 20.8 million units (20,833,333) priced at $0.12 per unit.

The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.20 for 18 months, subject to an acceleration clause.

The shares are currently trading at $0.115.

Proceeds, which will be used principally for exploration on Proximo’s Salvadora project and for general expenses, will be escrowed until the closing of the pending acquisition of Proximo Resources.

Rugby recently announced that it will acquire 100% of the outstanding ordinary shares and options of Proximo for 50 million shares of Rugby and 3.5 million Rugby options.

Proximo’s flagship property is the silver-copper-gold Salvadora Project located at the southern end of the El Indio belt, 40 kilometres south of Barrick’s El Indio mine which was one of the highest grade gold mines in Chile.

The project contains a 7 km long north-south-striking hydrothermal alteration zone that is up to 500 meters wide.

A secondary gold project located in the prolific gold-silver Santa Cruz province of Argentina will also be acquired.

Bryce Roxburgh and Yale Simpson, Non-Executive Chairmen, jointly stated: “Salvadora represents an outstanding opportunity for Rugby to acquire a project with scale in the famous El Indio gold belt. Rarely does one have the opportunity to be the first company to test a consolidated land package such as Proximo has accomplished. The project is permitted for immediate drilling but targeting can be enhanced through more sampling and geophysical surveys over the 70% of the property covered by scree. As a group we are very comfortable continuing to expand our holdings in Chile and Argentina where we were so successful in our previous companies, Exeter and Extorre. Both companies made world class discoveries and were sold to majors. We also remain confident that we will be able to realize substantial shareholder value from our Colombian asset base going forward. Our strong involvement in Rugby will most definitely continue, particularly as we have such significant shareholdings in the Company.”

Peter Love, current Proximo CEO and new CEO and President of Rugby, added: “I believe Salvadora has all the necessary ingredients to be a flagship project for Rugby. It is a large mineralized system in a superb location. We intend to drive shareholder value by rapidly advancing Salvadora to drilling later this year. We plan to finalize drill locations following an exploration program to commence after snow melt in October. I recognize the potential of Rugby’s Cobrasco porphyry copper project in Colombia. I believe the project could be a world class discovery once drilling is permitted.”

For more information on the company and its current portfolio of properties, please visit the company’s website at www.RugbyMining.com, contact Robert Grey, VP Communications, at 604-688-4941or by email at info@RugbyMining.com.

I’m Katriina Cotton for Investmentpitch Media