Vancouver, British Columbia – June 2, 2021: Rex Resources Corp. (TSX-V: OWN) (the “Company”) is pleased to announce that it has completed its initial public offering (“IPO”) in which it distributed 3,450,000 common shares of the Company at a price of $0.15 per common share for aggregate gross proceeds of $517,500. The Company’s common shares were listed on June 2, 2021 and are expected to commence trading on the TSX Venture Exchange (“TSXV”) on or about June 4, 2021 under the trading symbol “OWN”.
Research Capital Corp. (the “Agent”) acted as exclusive agent in respect of the IPO on a commercially reasonable efforts basis. The IPO consisted of the distribution of 3,000,000 common shares at a price of $0.15 per common share. The Agent also exercised in whole the Agent’s option to sell an additional 450,000 common shares at a price of $0.15 per share, for an aggregate total of 3,450,000 common shares subscribed for under the IPO. Pursuant to the IPO, the Agent received a cash commission of 8% of the gross proceeds raised and the Agent and its sub-agents received an aggregate of 276,000 non-transferable common share purchase warrants entitling the Agent and its sub-agents to purchase 276,000 common shares at $0.15 per common share at any time until June 2, 2023. The Agent also received a corporate finance fee (comprised of a cash payment and 60,000 common shares at a deemed price of $0.15 per common share).
The Company holds an option to acquire a 60% interest in and to four (4) mineral claims comprising a total of approximately 1621.67 hectares in the Terrace area, British Columbia (the “Kalum Property”), pursuant to an option agreement with Eagle Plains Resources Ltd. dated August 12, 2020, as amended.
As a result of the closing of the IPO, the Company now has 10,789,285 Shares issued and outstanding as of the date hereof, of which 2,500,000 Shares are subject to escrow pursuant to National Policy 46-201, released 10% on the IPO closing date with an additional 15% released every six months over a 36-month period. Pursuant to Policy 5.4 of the TSXV, an additional 4,779,285 Shares are subject to resale restrictions, 4,379,285 to be released 20% on the closing of the IPO with an additional 20% released every month thereafter over a 4-month period and 400,000 to be released 20% on the closing of the IPO with an additional 20% released every three months thereafter over a 1-year period.
Additional information on the Company, the IPO and the Kalum Property, can be found in the Company’s final long form prospectus dated March 18, 2021 as filed on SEDAR at www.sedar.com.
About Rex Resources Corp.: Rex Resources Corp. is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. The Company has an option to acquire a 60% interest and title to the Kalum Property located in the Terrace area, British Columbia.
Contact Information - For more information, please contact:
Craig Taylor, Chief Executive Officer
Tel: (604) 318-4053
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
The securities offered pursuant to the IPO have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains “forward‐looking information or statements” within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to the date of first trading in the Company’s common shares and its future business plans. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, fluctuations in metal and commodity prices, market prices, failure to obtain permits, and continued availability of capital and financing, and general economic, market or business conditions. In particular, there is no guarantee that exploration work, as proposed, or otherwise, will be completed on the Kalum Property. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in the Company’s final long form prospectus dated March 18, 2021 and filed under the Company’s profile on SEDAR at www.sedar.com. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
