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Rex Resources Corp
Symbol OWN
Shares Issued 11,189,285
Close 2024-05-24 C$ 0.06
Market Cap C$ 671,357
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Rex Resources options Mactush property for $300,000

2024-05-24 17:41 ET - News Release

Mr. Anthony Zelen reports

REX RESOURCES ENTERS INTO MINERAL PROPERTY OPTION AGREEMENT

Rex Resources Corp. has entered into a mineral property option agreement dated May 20, 2024, with two private, arm's-length British Columbia corporations pursuant to which Rex has acquired the exclusive right and option to purchase a 100-per-cent undivided interest in and to eight mineral claims located in the Alberni mining division of British Columbia and generally known as the Mactush property.

The property covers approximately 275 hectares near Port Alberni, lies roughly 1.5 kilometres south-southeast of the company's existing Rex property and was previously the subject of considerable exploration and drilling work. Each optionor presently owns a 50-per-cent interest in the mineral claims underlying the property.

In order to exercise the option, the company is obligated to pay the optionors an aggregate of $300,000 in cash over a period of 24 months, with $20,000 payable promptly following the date of the final bulletin of the TSX Venture Exchange in respect of the transaction. The balance of the cash consideration is payable on or before the six-month (as to $80,000), 12-month (as to $100,000) and 24-month (as to $100,000) anniversaries of the date of the option agreement.

In addition, Rex is required to issue 2.5 million common shares of the company to the optionors promptly following the date of the final bulletin, plus a further $175,000 worth of common shares, or cash in lieu thereof, at Rex's option, on or before the 12-month (as to $75,000) and 24-month (as to $100,000) anniversaries of the date of the option agreement. In the event that the company is ready, willing and able to exercise the option by paying all the cash consideration and issuing all the required common shares to the optionors during the 12 months following the date of the option agreement, the final cash payment and the final issuance of common shares will be subject to reductions of $25,000 and $50,000, respectively.

Although the option agreement does not include any work commitments on Rex's behalf, it provides for the payment of a cash finder's fee by the company to one arm's-length finder in the amount of $18,000.

Upon the exercise of the option, the property will be subject to a 2-per-cent net smelter returns royalty in favour of the optionors, one-half (or 1 per cent) of which Rex or its assigns has the option to purchase at any time for $250,000.

The option agreement, including the payment of the finder's fee, is subject to the approval of the exchange.

About Rex Resources Corp.

Rex is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. Rex owns an undivided 100-per-cent interest in eight contiguous mineral claims located near Port Alberni, B.C., generally known as the Rex property, and has the option to acquire an undivided 100-per-cent interest in an additional eight mineral claims in close proximity thereto known as the Mactush property.

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