Rex Minerals Limited (ASX:RXM)
Melbourne, June 24, 2009 AEST (ABN Newswire) - Rex Minerals Limited (ASX:RXM) has entered into new agreements with the Titeline drilling group, which, combined with the remainder of the existing drilling contract, will provide Rex with two drill rigs over the next 12 months. The drilling services will be paid for through a combination of cash and shares. The agreements continue the positive long term relationship that the two companies have established since 2007.
Rex and Titeline initially established a drilling contract for cash and shares prior to Rex's IPO in 2007. This drilling contract gave Rex the capacity to test a large number of targets leading to the copper discoveries at Hillside (SA) and Mt Carrington (NSW) at a much lower level of shareholder dilution than would otherwise have been possible. In return, Titeline has become a long term and supportive shareholder, receiving the benefits of a growing share price from past discoveries and in the event of further drilling success.
Under the new drilling agreements Rex has agreed to issue 3,008,460 shares at a price of A$0.70. Shareholder approval will be sought for the issue of the shares in the agreements at Rex's AGM which will be held in October/November 2009.
Contact
Steven Olsen
Managing Director
Tel: +61-3-5337-4000
or
Janet Mason
Company Secretary
Tel: +61-3-5337-4000
E-mail: info@rexminerals.com.au
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