News
RX Exploration Inc. To Complete $595,000 Private Placement
January 16, 2009
For Immediate Release: Toronto, Canada - RX Exploration Inc. (“the Company”) is pleased to announce that on January 19, 2009, it will complete the second tranche of a private placement of up to 15,000,000 units @ $0.20 per unit through IBK Capital Corp. of Toronto. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share for two years at $0.25 per share. The securities issued are subject to a four month hold period. The placement, together with the first tranche completed on December 31, 2008, will result in proceeds of approximately $580,000 which will be used primarily to finance the ongoing underground development program on the company’s Drumlummon Mine in Montana. The proceeds will also be used to pay for the Company’s option payment on the property which is due in May 2009 and for general administrative expenses and working capital.
Cash commissions (9%) in the amount of $45,900 are payable and 255,000 (10%) broker’s warrants are issuable with respect to the brokered part of this private placement. The broker’s warrants are exercisable at $0.20 per share for a two year period.
The Company also completed a $15,000 private placement of flow-through units @ $0.30 per unit. Each flow-through unit consists of one flow-through common share and one-half of a share purchase warrant. Each warrant entitles the holder to purchase one additional common share for two years at $0.40 per share. Cash commissions (9%) in the amount of $1,350 are payable and 5,000 (10%) broker’s warrants are issuable with respect to the brokered part of this private placement. The broker’s warrants are exercisable at $0.30 per share for a two year period. The proceeds will be used for further exploration on the Company’s Sill Lake silver-lead project near Sault Ste. Marie, Ontario.
For further information please contact: John F. O’Donnell, Chairman of the Board, at (416) 862-7330 or Murray R. Nye, President, at (204) 989-2434.
RX Exploration Inc. is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNSX (Symbol: RXE). There will be 48,486,508 common shares issued and outstanding following the completion of the private placement.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: Statements made in this news release that relate to future plans, expectations, events or performances are forward looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.