Rubicon Minerals entered into a financing agreement with CPPIB Credit Investments (CPPIB), a wholly owned subsidiary of Canada Pension Plan Investment Board, for a $50 million secured loan facility.

Proceeds from the Loan Facility will be used for the development of the Phoenix Gold Projectand to provide adequate working capital and flexibility to optimize the Project during the ramp-up period to potential commercial production.

“We are pleased to announce that Canada Pension Plan Investment Board has chosen to invest in Rubicon,” said Michael A. Lalonde, president and CEO of Rubicon. “This financing is consistent with our approach to maintaining a strong balance sheet throughout and beyond the ramp-up period. Mill commissioning is now well-advanced. We have begun processing low-grade mineralized material, which will continue through the remainder of the second quarter as we fine-tune the mill circuit. We remain on schedule for projected initial gold production in mid-2015.”

The facility has a five-year term that will mature on May 12, 2020, with the entire principal amount payable at maturity. The loan facility bears an annual cash interest rate of 7.5%, compounded quarterly. In consideration for the loan facility, the company has issued 10,000,000 warrants to CPPIB. Each warrant entitles CPPIB to acquire one common share of Rubicon for a period of five years from the date of closing at an exercise price of C$1.715, which represents a 30% premium to the five-day volume weighted average price of Rubicon shares on the Toronto Stock Exchange on closing. The common shares eligible for purchase through the warrants equate to approximately 2.5% of Rubicon’s existing issued and outstanding shares. Rubicon has received the entire US$50 million from the loan facility, less applicable fees.

Rubicon Minerals is an emerging gold producer focused on delivering shareholder value by growing free cash flow in low-risk jurisdictions.