Sprott approves $2.5m RX Exploration financing
Sprott Asset Management, a business unit of Sprott Inc. and manager of the Sprott family of mutual funds, hedge funds and discretionary managed accounts, has approved the $2.5 million financing deal with RX Exploration Inc. through Brant Securities Limited.
The offering consisted of 5,000,000 units at $0.50 per unit. Each unit of the 5,000,000 unit offering consists of one common share of the Company and one share purchase warrant. Each warrant entitles the holder to acquire one additional common share at a price of $0.70 until May 13, 2012. The common shares are subject to a four month hold period.
Commissions totaling $125,000 (5%) were paid and 250,000 (5%) broker's warrants were issued. The broker's warrants are exercisable at $0.50 per share until May 13, 2012. The net proceeds of $2,375,000 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.
RX Exploration Inc. is a gold exploration and development 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-style, epithermal underground gold and silver mine in Montana. The Company has installed a water treatment system at the mine and mining activities are fully permitted.