Rubicon sells unmarketable shares

West Perth-based gold and base metals exploration company Rubicon Resources Ltd has arranged to sell 1.4 million shares from small shareholders acquired through an in-specie share distribution.

The re-distribution, of Heron Resources Ltd's Rubicon shares to Heron shareholders, occurred as the gold and base metal company was spun out of Heron last year.

The Rubicon board will sell the shares, held by 1,215 shareholders, at a price of 14 cents each, almost on par with today's trading price of 14.5 cents at 1:10PM WST.

Rubicon said in an announcement the change would reduce its shareholder numbers by 37 per cent, subsequently reducing administration and regulation costs.

The full text of a Rubicon announcement is pasted below

Rubicon Resources Limited announced on 5 June 2007 that it had commenced an unmarketable parcel sweep as part of its capital management programme. The Company had acquired a large number of small shareholders as a result of the in-specie distribution of Heron Resources Limited ("Heron") shares in Rubicon to Heron shareholders.

That exercise has now been completed with 1,215 shareholders holding 1,361,204 shares not advising the Company that they wished to retain their shares in the Company. As a result, the board has arranged to sell these shares on behalf of the shareholders at a price of $0.14 per share.

The 1,215 shares represent less than 1.8% of the Company's share capital but approximately 37% of the number of shareholders. This exercise reduces the number of shareholders from 3,263 to 2,048 with significant reductions in the administration, regulation, communication and share registry costs to the Company.