- Rex Minerals (RXM) has paid off a $4.4 million loan facility, making the gold and copper exploration business debt free
- The materials stock first entered into the loan agreement in February 2020, to fund exploration work at its Hillside and Hog Ranch projects
- It managed to repay the facility using funds from a recent $9.5 million capital raise, where RXM issued close to 40 million shares at 24 cents each
- The company has thanked the lenders for their support, noting the loan came at an important time for the junior explorer
- Shares in Rex Minerals are down 2.47 per cent at 39.5 cents each
Rex Minerals (RXM) has paid off a $4.4 million loan facility, meaning the gold and copper exploration business is now debt free.
The materials stock announced the news on Tuesday, explaining it first entered into the loan agreement in February 2020.
At the time RXM wanted to fund exploration work at its Hillside Copper Project in South Australia and at its Hog Ranch Gold Project in Nevada.
Following a recent capital raise, Rex stated it has been able to repay the original $4.4 million facilities.
The company raised a total of $9.5 million via the placement, issuing close to 40 million shares at 24 cents each.
In a statement to shareholders today, Rex thanked the lenders for their support, noting the loan came at an important time for the junior explorer.
"We would like to acknowledge the group of lenders who provided funding to the company in February 2020. Their support of our vision was integral to the Company’s plans at that time," RXM stated.
"The loan facility allowed the company to fund work at Hillside and Hog Ranch (including drill programs) without the need to dilute shareholders, at a time when our market capitalisation was approximately $19 million," it added.
Rex Minerals' shares are trading down 2.47 per cent at 39.5 cents per share at 1:41 pm AEST.