Rubicon Minerals raises "going concern" doubt after covenant breach

Tue Mar 22, 2016 9:11am EDT
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March 22 (Reuters) - Canadian gold miner Rubicon Minerals Corp said there was significant doubt about its ability to continue as a going concern after it breached a loan covenant.

Rubicon, which suffered a major setback in January when it had to cut the gold reserve estimate for its Phoenix mine in Ontario by 86 percent, said it continues to evaluate strategic options and that it was in talks with lenders.

Rubicon had raised funds for the mine through issuing shares and through so-called "streaming agreements", including one with Royal Gold Inc, which provided upfront funds in exchange for a portion of a mine's future output.

The Canada Pension Plan Investment Board (CPPIB) provided a $50 million loan facility in May for developing the mine.

Rubicon had debt of C$216.2 million as of Dec. 31. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Maju Samuel)