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- Rex Minerals (RXM) has begun accepting applications for a share purchase plan (SPP) which aims to raise even more capital for the company
- Rex recently netted $10 million from an institutional placement to investors earlier this month
- It plans to use the majority of the capital raised on further exploration work at Hog Ranch and Hillside
- Under the SPP, new shares are priced at 16.5 cents each, which is the same price offered to investors via the placement
- Rex plans to close the plan on September 30, with eligible shareholders invited to apply for $30,000 worth of new shares
- Despite the news, Rex Minerals stock is trading down 7.14 per cent for 16.3 cents per share
Gold and copper explorer Rex Minerals (RXM) has begun accepting applications for a share purchase plan (SPP) as the company aims to raise even more capital.
Rex first signalled its intention to tap investors for fresh capital back in late August when it entered back-to-back trading halts.
Last week, the company announced it had raised $10 million via an institutional placement to professional and sophisticated investors.
The company also flagged plans to undertake a share purchase plan, giving eligible shareholders the chance to participate in the offer.
Rex today revealed the offer had now opened, with shareholders invited to apply for $30,000 worth of new shares.
The shares are being offered for 16.5 cents each, the same price as the shares offered to investors under the placement. Rex’s SPP is set to close on September 30.
The majority of the funds raised from the SPP and placement will go towards further exploration work at Rex’s Hog Ranch landholding in Nevada, U.S.
In particular, the funding will support reverse circulation and diamond drilling at the site, as well as Rex’s feasibility studies.
The money will also go towards Rex’s Hillside project, advancing pre-development work at the site.
Despite the news, shares in Rex Minerals are trading down 7.14 per cent, for 16.3 cents each at 3:49 pm AEST.
