TORONTO, Nov. 9, 2011 /CNW/ - RX Exploration Inc. (the "Company" or "RXE") (TSX VENTURE: RXE) (OTCQX:RXEXF) announced today that its
wholly-owned subsidiary Drumlummon Ltd. (the "Borrower") has entered into a senior secured line of credit facility agreement
(the "Credit Agreement") with an affiliate of Hale Capital Partners, L.P., ("Hale") for up to US $10 million. All amounts owing under the Credit
Agreement are guaranteed by the Company.
Outstanding amounts under the Credit Agreement accrue interest at a
fixed rate of 8.75% per annum with interest payable monthly in arrears
starting the sixth month after the initial advance of funds. Amounts
owing under the Credit Agreement may be prepaid in whole or in part
without premium or penalty at any time and any remaining outstanding
amounts are due on or before May 8, 2013. The Credit Agreement is
secured by a first charge against all the properties and assets of the
Borrower, the Company and certain of its subsidiaries. The closing,
which is expected to take place before the end of the upcoming week,
and the ability to make subsequent draws under the Credit Agreement are
subject to certain standard conditions precedent and a standard one
time closing fee.
The Credit Agreement will be used for working capital purposes and for
additional expenditures of the Borrower, the Company and certain of its
subsidiaries, and will assist in getting RXE's 100% owned Drumlummon
Mine into commercial production in early to mid-2012.
Amounts owing under the Credit Agreement cannot be converted into equity
or voting shares of RXE or its subsidiaries. No common shares, options
or warrants of RXE were issued to Hale or any other person and no
broker or placement fees were paid in connection with this transaction.
About RX Exploration Inc.
RXE is currently focused on re-starting production and exploring its
Drumlummon Mine, a past producing high-grade, bonanza-type, epithermal
underground gold and silver mine in Montana. RXE is a gold and silver
mining company focused on growth in North America.
The Company's shares are listed on TSX-V (Symbol: RXE) and on the OTCQX
(Symbol: RXEXF). There are 167,307,796 common shares issued and
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
About Hale Capital Partners
Based in New York City, Hale Capital Partners has established itself as
a leading private equity firm focused on strategic investments in
public companies and their subsidiaries. Hale Capital Partners' team is
comprised of seasoned private equity veterans and entrepreneurs, who
bring not only deep domain expertise but also hands-on operating
experience to help build highly successful companies. Hale Capital
Partners' mining portfolio spans all stages of mine development from
exploration to commercial production.
Cautionary Statement Regarding Forward Looking Information
This press release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information
includes, but is not limited to, the Company's expectations,
intentions, plans, and beliefs with respect to, among other things, the
Drumlummon property. Often, but not always, forward-looking information
can be identified by forward-looking words such as "anticipate",
"believe", "expect", "goal", "plan", "intend", "estimate", "may", and
"will" or similar words suggesting future outcomes, or other
expectations, beliefs, plans, objectives, assumptions, intentions, or
statements about future events or performance. Forward-looking
information is based on the opinions and estimates of the Company as of
the date such information is provided and is subject to known and
unknown risks, uncertainties, and other factors that may cause the
actual results, level of activity, performance, or achievements of the
Company to be materially different from those expressed or implied by
such forward looking information. This includes the ability to develop
and operate the Drumlummon property, risks associated with the mining
industry such as economic factors (including future commodity prices,
currency fluctuations and energy prices), failure of plant, equipment,
processes and transportation services to operate as anticipated,
environmental risks, government regulation, actual results of current
exploration activities, possible variations in ore grade or recovery
rates, permitting timelines, capital expenditures, reclamation
activities, social and political developments and other risks of the
mining industry. Although RXE has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated, or intended.
Readers are cautioned not to place undue reliance on such information.
By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, and projections of various future events will not occur. The
Company undertakes no obligation to update publicly or otherwise revise
any forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
On Behalf of the Board
President and CEO
SOURCE RX EXPLORATION INC.
For further information:
President and CEO