RX Exploration Inc.
CNSX : RXE

July 02, 2009 18:15 ET

RX Exploration Completes $1,679,700 Private Placements and Continues to Encounter Significant Gold and Silver Values in "D" Block of Drumlummon Mine and in Pilot Hole for Proposed Decline

TORONTO, ONTARIO--(Marketwire - July 2, 2009) - RX Exploration Inc. (the "Company") (CNSX:RXE) is pleased to announce that on June 30, 2009, the Company completed private placements totaling $1,679,700 consisting of a non-brokered private placement of 5,143,500 units and a brokered private placement of 3,255,000 units through IBK Capital Corp. Each unit consisted of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share for two years at $0.40 per share (the expiry date shall be accelerated to thirty days from the tenth consecutive trading day on which the common shares of the Company close at or above $0.60). The securities issued are subject to a four month hold period. Cash commissions in the amount of $58,590 (9%) were paid and 325,500 (10%) broker's warrants were issued in connection with the brokered portion of the offerings resulting in total net proceeds to the Company in the amount of $1,621,110 which will be used primarily for general administrative expenses and working capital. The broker's warrants are exercisable at $0.20 per share for a two year period. The Company previously completed on April 24, 2009 a tranche of financing through IBK Capital Corp. of 1,225,000 units on the same terms as aforesaid resulting in net proceeds of $219,735.24 which was used for exploration and development at the Drumlummon Mine in Marysville, Montana.

The Company is considering the driving of a new decline to give access to the Charly Vein, discovered by the company in 2008 where it calculated initial inferred resources of 155,518 tons containing 70,703 ounces of gold and 1,915,560 ounces of silver as reported in its news release dated November 25, 2008. The proposed portal will be collared on surface at mine level 465 and initially driven 2000 feet to the 600 level. As part of the design and planning functions for the decline, a pilot hole was cored along the approximate path of the decline. This pilot hole encountered what is believed to be the northern extension of the Drumlummon Vein, approximately 400 feet north of any known previous stoping. The vein appears similar to the Drumlummon as exposed in areas previously mined. Further down the hole, a second vein, believed to be the Empire was also intersected.



Assay results from the pilot hole are as follows:

Hole From (ft) To (ft) Intersection Gold Silver
---- -------- ------ Length (ft) Au oz/ton Ag oz/ton
------------ --------- ---------
09-100 550 562 12 0.237 0.55
and 1057 1059 2 0.404 2.55


The Company is also pleased to report the continuation of significant assay results from core holes drilled from the hanging wall of the Drumlummon/Castleton structural zone in the "D" Block area of the Drumlummon Mine. The Company previously reported (News Release May 12, 2009) that its current drill program, focusing on exploration of the "D" Block had encountered significant assay results from core holes drilled into the hanging wall and footwall of old workings in the "D" block. Drilling has continued from drill stations excavated in the new hanging wall drift.



Following are the latest significant assay results:

Hole From (ft) To (ft) Intersection Gold Silver
---- -------- ------ Length (ft) Au oz/ton Ag oz/ton
------------ --------- ---------
09-91 92 96 4 0.373 0.83
and 102 103.5 1.5 0.428 1.95

09-93 12 16 4 0.096 16.07
and 36 40 4 0.718 12.76
and 94 96 2 2.829 91.36

09-95 38 40 2 0.406 42.54


All drill core is logged and cut in half with diamond saw or core splitter. One half is bagged and shipped to Norris Lab in Norris, MT, while the other half is archived and stored on site. For Quality Control/Quality Assurance purposes, standards and blanks are randomly inserted into the sample stream. Selected samples are sent to ALS Chemex Lab, Reno, NV for verification assaying.

L. Joseph Bardswich, P.Eng. (Mining)(Ontario) is the qualified person responsible for providing the technical details contained in this press release.

The Company intends to complete a further offering of up to 25,000,000 units at a minimum price of $0.20 per unit. Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share for two years at $0.40 per share (the expiry date shall be accelerated to thirty days from the tenth consecutive trading day on which the common shares of the Company close at or above $0.60). The securities issued will be subject to a four month hold period from closing. The Company may pay commissions of up to 9% and 10% broker's warrants where appropriate. The proceeds of the financing will be used for exploration and development at the Drumlummon Mine, particularly the driving of the new decline described above.

RX Exploration Inc. is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNSX (CNSX:RXE). There are currently 68,207,578 common shares issued and outstanding following completion of the private placement.

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.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • RX Exploration Inc.
    John F. O'Donnell
    Chairman of the Board
    (416) 862-7330
    or
    RX Exploration Inc.
    Murray R. Nye
    President
    (204) 989-2434