Operator: Rubicon Minerals Corporation
Royalty: NSR: 2%
Franco-Nevada has a 2% NSR (subject to a buy-back of 0.5%) on the water claims (which cover the majority of Mineral Resources) of the Phoenix gold project in Red Lake, Ontario operated by Rubicon Minerals Corporation (“Rubicon”). The Phoenix project is located 10 km north of Goldcorp’s Red Lake mine. In November 2015, Rubicon announced a temporary shutdown of underground activities to enhance its geologic model and develop an implementation plan as the gold mineralization was more geologically complex than anticipated. In January 2016, Rubicon provided an updated Mineral Resource estimate which included a reduction of 91% to Indicated contained gold ounces and an 86% reduction to Inferred contained gold ounces. Rubicon has since reorganized its debts and has put in place a new management team. Rubicon is currently focused on extensively drilling the deposit to gain a better understanding of the orebody. An updated Mineral Resource estimate is expected within 18–24 months following Phase 1 of the exploration program.