Running Fox Resource Corp.
TSX VENTURE : RUN
FRANKFURT : C8Q
PINK SHEETS : RFXRF

Running Fox Resource Corp.

January 04, 2007 15:44 ET

Running Fox $2,400,000 Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 4, 2007) - Running Fox Resource Corp. (TSX VENTURE:RUN) (PINK SHEETS:RFXRF) (FWB:C8Q). Trent Moore, VP, on behalf of the Board of Directors reports:

Running Fox has arranged a non-brokered private placement financing in the amount of $2,400,000. The majority of the financing is priced at 75 cents for a share and a warrant, with each warrant exercisable at $1.10 for one year and $1.50 in the second year. $280,000 of the financing is priced at $1.00 per Unit for a flow through share and one-half of a non-flow through share purchase warrant, exercisable for one year at $1.25. There will be a finder's fee on a portion of the financing.

Warrants for the financing have a re-pricing mechanism due to the Company's planned and previously announced splitting off of a separate Energy NewPubCo. to create a new public company to enhance shareholder value. The repricing mechanism is as follows:

Evaluation Date Repricing Mechanism: On the date that is 40 trading days after the date that the Company's proposed energy division spin-out begins to trade separately from the Company (the "Evaluation Date"), the Company will apply to the TSX to re-price the exercise price of the Warrants to a price that is a 30% premium over the preceeding 30 day average trading price of the Company's shares. No re-pricing will occur if on the Evaluation Date the exercise price is less than a 30% premium to the trading price.

Running Fox is an energy sector Canadian small cap company with three distinct divisions:

1. Oil and Natural Gas Exploration and Production;

2. Energy Sector Field Services, Construction and Technology; and

3. Advanced High-Grade Gold Project in British Columbia.

The combined market cap for Running Fox's three divisions is currently less than $30 million Canadian. First nine months consolidated revenues were $5.150 Million, with net income prior to acquisition adjustments of $884,000.

The Company is well leveraged to natural gas prices with its Alberta operations, and its high-grade BC gold project provides upside and leverage to the price of gold. Visit www.foxgold.ca for further information.

Running Fox is working on further acquisitions and long-term cash flow development.

On behalf of the Board of Directors: Trent Moore, VP, Running Fox Resource Corp.

The Company relies on legislation applicable to forward looking statements, and seeks safe harbour.

Contact Information

  • Running Fox Resource Corp.
    Trent Moore
    VP
    (403) 742-0500
    Website: www.foxgold.ca