The company could raise up to a further C$5 million (US$3.9 million) if the syndicate of underwriters, led by BMO Capital Markets, exercise an option to buy additional flow-through shares at the same price of $1.53.

Rubicon had closed a C$10 million bought deal private placement financing in March last year at $2.57 per flow-through share.

Shares in the company were trading at C$2.27 a year ago and lost 5c on Friday to close at $1.28.

Rubicon had shuttered its mine in 2015 shortly after pouring first gold, after discovering the deposit was much more geologically complex than first thought.

In its 2018 exploration programme announced last month, Rubicon said it was planning 10,000m of infill and step-out drilling, plus 4,000m of "bazooka drilling" - drilling short holes within the developed test stopes to better define the extent of the mineralisation in the stoping blocks and stoping shapes.

It is also planning test mining and restarting the mill mid-year to process the bulk samples.

President and CEO George Ogilvie said the company was half-way through the 18-24 month plan outlined when it completed the restructure in December 2016 and said they were encouraged by progress to date.

The company started the year with about C$22 million (US$17.5 million) in cash.