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- Rex Minerals (RXM) has received binding commitments to raise $10 million via a placement and flagged an upcoming share purchase plan (SPP)
- The SPP is not underwritten, and the company has not yet provided an indication of how much it intends to raise
- Under both the placement and the SPP, shares will be issued at 16.5 cents each, which represents a 17.8 per cent discount to the 15-day volume-weighted average price
- The funds will be used for exploration and feasibility studies for the Hog Ranch Gold Project in Nevada as well as for pre-development activities at the Hillside Copper-Gold Project in South Australia
- Shares closed 11.9 per cent lower today at 18.5 cents
Rex Minerals (RXM) has received binding commitments to raise $10 million via a placement and flagged an upcoming share purchase plan (SPP).
Placement commitments come from professional and sophisticated investors, both in Australia and abroad.
The SPP is not underwritten, and the company has not yet provided an indication of how much it intends to raise.
Under both the placement and the SPP, shares will be issued at 16.5 cents each, which represents a 17.8 per cent discount to the 15-day volume-weighted average price.
Managing Director Richard Laufmann said the company was extremely pleased with the support it received for the placement and that it looks forward to offering the SPP to shareholders.
“Gold and copper both have strong investment thematics, and Rex represents excellent exposure to both of these. Rex is looking forward to introducing the fast-growing Hog Ranch story to a global market that is increasingly turning into a gold investment,” Richard explained.
“With these funds, we are now well placed to deliver on an exciting set of short and medium-term objectives that can demonstrate the potential we see in this gold project,” he continued.
The funds will be used to advance works at both the Hog Ranch Gold Project in Nevada and the Hillside Copper-Gold Project in South Australia.
At Hog Ranch, the cash will support exploration, test work, permitting and feasibility studies.
Meanwhile, at Hillside in Australia, the capital will be used for pre-development activities, maintenance, tenure fees, corporate and administration costs.
The company has also extended its existing loan facility repayment term until February 2022.
Shares closed 11.9 per cent lower today at 18.5 cents.
