Rex raises for Hillside exploration

Finance

Publishing Date: 13 Oct 2010 5:47pm GMT
Author: Mining Journal

Rex Minerals has raised A$85 million to accelerate exploration at the Hillside copper project in South Australia.

The company said 34 million shares will be issued at A$2.50/share, which represents a 9.7% discount to the last closing price.

Rex will put the funds towards a two-year exploration program aimed at moving the Hillside project towards a full feasibility study, and expanding the regional exploration program on the Pine Point copper belt in South Australia.

Steven Olsen, Rex managing director, said: “It is very pleasing to see the strong level of investor support, with Rex receiving overwhelming interest in the placement.

“The monies raised represent another important milestone for Rex, which now has sufficient funds to take the Hillside project through to full feasibility study.

“In addition, the placement will enable Rex to increase its regional drilling program to test the multiple targets that have generated recently on the Pine Point copper belt.”

The placement has been made to institutional and sophisticated investors in Australia and overseas. It is also being undertaken in two tranches, one on October 19 and the other on November 25.