Rex Minerals Limited (ASX:RXM) and Drake Resources Limited ("Drake") have modified the terms of the option to purchase agreement for the Mt Carrington Project which was announced to the ASX on 29 April 2008. The modified terms aim to provide greater certainty for both parties by locking in the number of shares to be issued on completion of the sale of the Mt Carrington Project. It also allows for A$350,000 cash to Drake upon Rex exercising the option (which expires on 28 April 2009) and provides Rex with a reduced total cash outlay upon completion.

Under the revised terms of the Option Agreement, total remaining consideration for the purchase of the Mt Carrington Project is as follows:

- Total cash consideration of A$685,000 (reduced from A$850,000).
- 2.0 million Rex Shares.
- A$150,000 in the form of Rex Shares, based on VWAP of Rex Shares during the 30 trading days prior to completion or alternatively Rex can elect to pay in cash.
- Assumption of the bond and liabilities associated with the mining leases and exploration licences.

The sale is conditional upon Rex obtaining the renewal of the Mining Leases, and the consent from the Minister to the transfer of the Mining Leases to Rex.

About Rex Minerals Limited

The strategy at Rex Minerals Limited is to acquire highly prospective projects with the potential to host large resources in commodities that are in high demand. Rex has ownership of projects covering the commodities of Gold, Silver, Copper and Iron. They are located in two states (SA and NSW) and are within geological terrains that are known for their endowment in these commodities. Rex then applies its extensive technical experience and existing drilling capacity to progress these projects. These projects will lay the foundations for long term internal growth of Rex as we forge ahead to become a diversified exploration and mining company.

 

Contact

Steven Olsen
Managing Director

Or

Janet Mason
Company Secretary
Tel: +61-3-5337-4000
Email: info@rexminerals.com.au
www.rexminerals.com.au



Link: Rex Minerals Limited (ASX:RXM) And Drake Resources Limited Modifies The Purchase Agreement For Mt Carrington Project


Related Companies

Rex Minerals Limited
            

Drake Resources Limited
         


Related Industry Topics: