RX Exploration Inc.

March 30, 2010 16:07 ET

RX Exploration Completes Private Placements

TORONTO, ONTARIO--(Marketwire - March 30, 2010) - As a follow-up to its February 2, 2010 news release, RX Exploration Inc. (the "Company") (CNSX:RXE) has now completed tranches of its partially brokered private placements totaling 10,511,558 units at $0.30 per unit for gross proceeds of $3,153,467. Each unit consists of one common share of the Company and one share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a price of $0.40 until 5:00 p.m. (Toronto time) for two years from closing, provided that the warrant expiry date shall be accelerated to thirty days from the tenth consecutive trading day on which the shares of the Company close at or above $0.60. The common shares are subject to a four month hold period.

Commissions totaling $194,227 (9%) were paid and 719,358 (10%) broker's warrants were issued on part of the proceeds. The broker's warrants are exercisable at $0.30 per share for a two year period. The net proceeds of $2,931,406 will be used primarily for continued exploration and development on the Company's principal property, the Drumlummon Mine in Montana, general administrative expenses, and working capital. The Company is currently driving an internal ramp from the 400 level to intersect and access the D-Block Zone as well as the Charly Vein system.

IBK Capital Corp. and First Capital Markets Inc. separately acted as non-exclusive agents with respect to these transactions. The engagement letter with First Capital and the appointment of the Richmond Club as IR consultant referred to in the February 2, 2010 news release was terminated upon the completion of the aforesaid private placements. The Orient Venture transactions referred to in the news release, which are still subject to the respective subscribers receiving final TSX Venture Exchange approvals, have yet to be completed.

About RX Exploration Inc.

RX Exploration Inc. is a gold exploration company whose strategy is to re-examine gold projects within North America that have previously reached advanced exploration, underground development or past gold production. The Company is currently focused on re-starting the Drumlummon Mine, its past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana.

The Company's shares are listed on CNSX (Symbol: RXE). There are 93,626,469 common shares issued and outstanding.

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