TORONTO, ONTARIO -- 04/11/08 --
RX Exploration Inc. ("the Company") (CNQ: RXEX) is pleased to announce that it has completed a $1,916,800 private placement consisting of a total of 4,792,000 units at a price of $0.40 per unit through IBK Capital Corp. of Toronto. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share for two years at $0.60 per share. The securities issued are subject to a four month hold period. The placement resulted in net proceeds of $1,750,588 which will be used primarily to finance the ongoing underground drilling and rehabilitation program on the company's Drumlummon Mine in Montana, one of the larger former producers of gold and silver in the Western United States. It is of the "bonanza"- type epithermal deposits which are very young and low temperature in origin and which can produce high grades over large widths. The proceeds will also be used for general administrative expenses and working capital.
Cash commissions (9%) in the amount of $166,212 were paid and 461,700 (10%) broker's warrants were issued pursuant to the private placement. The broker's warrants are exercisable at $0.40 per share for a two year period.
In other news, the Company is pleased to report its IP geophysical crew has commenced work on its Sill Lake silver-lead project near Sault Ste. Marie, Ontario. This will be followed by a diamond drilling program in May-June 2008 to confirm the validity of historic data regarding grades and tonnage of potential resources. Exploration efforts will focus on testing the remaining resources accessible by the existing mine workings and potential extensions to the resource along strike and at depth as disclosed in the Company's news release dated March 17, 2008. The Company has existing available funds of almost $2,000,000 set aside to fund the Sill Lake project.
RX Exploration Inc. (CUSIP # 78347W107) is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNQ (Symbol: RXEX). There are currently 37,478,508 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.
CNQ has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
RX Exploration Inc.
John F. O'Donnell
Chairman of the Board
(416) 862-7330
RX Exploration Inc.
Murray R. Nye
President
(204) 989-2434
