Rubicon and Agnico Eagle Dance
Yesteday Rubicon announced a strategic investment by Agnico Eagle in Rubicon, making Agnico a 9.2% institutional investor in RBY. They scored over 21 million shares at C3.23, not bad at all. Aside from the monetary gains and institutional confidence the deal brings to RBY, the deal creates a technical services agreement that enables RBY to have access to Agnico's geological and environmental engineering team to help advance it's F2 project at Red Lake. Agnico, in turn, also has the right to maintain it's investment status of 9.2% ownership in RBY in future stock offerings if Agnico elects to do so.
Clearly, the market is happy with this union. And this investment demonstrates the confidence of the bigger miner in RBY eventhough the most recent RBY report stated lower-than expected drilling results. This confirms my initial belief in RBY as either a very promising gold miner for years to come or a buyout candidate. Either way, yesterday's news brings releif and confirmation that RBY was/is a solid investment even though it didn't make it on Sinch's top 10 list....yet :)