Rex Resources Announces Planned 2022 Exploration at Kalum Gold Property, Golden Triangle Region, BC & Non-brokered private placement financing
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NEWS RELEASE
Rex Resources Announces Planned 2022 Exploration at Kalum Gold
Property, Golden Triangle Region, BC & Non-brokered private
placement financing
Vancouver, B.C., April 26th, 2022: Rex Reso urces Corp. (TSX-V:OWN), (“Rex” or “the
Company”) is pleased to announce that it has approved a summer 2022 exploration program at Eagle
Plain Resources Corp.’s ( TSX-V:EPL) (“EPL”) 100% owned Kalum Property located
approximately 35 km northwest of Terrace, Britis h Columbia in the Skeena Mining Division. The
planned program is budgeted at $150,000 and will include detailed mapping, prospecting, and surficial
geochemical surveys including systematic soil & rock sampling at the Bling Rico, Babit-God, Tojo
and Hat Zones. The program aims to further define and extend mineralized tr ends highlighted in
historic work. The results from the 2022 program will be used to furthe r interpret the property
mineralization model and generate drill-ready targ ets for future programs. The Company holds the
exclusive right to earn an undivided 60% intere st in the property by completing exploration
expenditures of $3,000,000, making cash payments of $500,000 and issuing 1,000,000 common shares
to Eagle Plains over a four year period.
Property Geology
The 2,870 ha property is flanked by a large intrusive stock that has intruded sedimentary rocks of the
Bowser Lake Group. There are at least fifteen mineral showings on the property coincident with the
contact zones of these intrusive plutons and large-scale structural zones. Mineralization is dominantly
high-grade, epithermal/mesothermal, polymetallic and gold-bearing veins that are hosted within both
intrusive rocks and country rock.
Property History
Eagle Plains acquired the prope rty in 2003 and completed signifi cant exploration programs on the
property in 2003 and 2004. The programs included a VTEM airborne survey, extensive geochemical
programs, geologic mapping, and a 19-hole diamond drill program. The best drill results from this
work included drill-hole KRC04001, drilled at the Rico showing (discovered by Eagle Plains), which
returned 35g/t Au over 2.5m from 101.8m to 104.3m; in cluding a 0.5m interval that assayed
107g/t Au. Historical sampling at the Chris occurrence reported a grab sample of 158 g/t Au and
5,536 g/t Ag. At the Martin showing area, sampling by Eagle Plains in 2004 returned 34.0 g/t Au
and 83.0 g/t Ag from a grab sample of sulphide bearing quartz vein material. The Martin area has
never been drill tested. Management cautions that rock grab samples are selective samples by nature
and as such are not necessarily representative of the mineralization hosted across the property.
The property area has seen explorat ion activity by various operators ov er the years, with the most
recent diamond drilling carried out in 2012 by Clems on Resources, who drilled a single hole to test
for high-grade mineralization in an area outsid e of present claim bounda ries. 2020 work by Eagle
Plains included high resolution orthophoto & LIDAR surveys and an airborne magnetic & radiometric
geophysical survey covering the western portion of the property.
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All work to date continues to support the interpreted potential for the Kalum Property to host both
high-grade gold-silver deposits and lower-grade bulk-tonnage type gold mineralization.
Charles C. Downie, P.Geo., a “qualified person” fo r the purposes of National Instrument 43-101 -
Standards of Disclosure for Minera l Projects and a director of Eagle Plains, has prepared, reviewed,
and approved the scientific and technical disclosure in the news release.
Non-brokered private placement
The Company is also pleased to announce a non-brokered private placement (the " Offering") for
aggregate gross proceeds to the Company of up to $200,000 from the sale of flow-through shares of
the Company (the "FT Shares") at a price of $0.15 per FT Share. Each FT Share will be issued as a
"flow-through share" within the meaning of the Income Tax Act (Canada)
The gross proceeds from the issuance of the FT Shares will be used for "Canadian Exploration
Expenses" (within the meaning of the Income Tax Act ( Canada)) (the "Qualifying Expenditures"),
which will be renounced with an effective date no later than December 31, 2022 to the purchasers of
the FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT
Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will
indemnify each subscriber of FT Shares for any additional taxes payable by such subscriber as a result
of the Company's failure to renounce the Qualifying Expenditures.
The closing of the Offering is expected to occur on or about May 24, 2022 and is subject to receipt of
all necessary regulatory approvals including the Canadian Securities Exchange. The FT Shares,
Warrant Shares and any common shares will be subject to a hold pe riod of four months and one day
in accordance with applicable securities laws. Finde r's fees will be payable in accordance with the
policies of the Canadian Securities Exchange.
The securities offered have not been, and will not be, registered under the United States Securities Act
of 1933, as amended (the " U.S. Securities Act ") or any U.S. state securi ties laws, and may not be
offered or sold in the United States or to, or for the account or benefit of, United States persons absent
registration or an applicable exemption from the re gistration requirements of the U.S. Securities Act
and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
About Rex Resources
Rex Resources Corp. is a mineral exploration co mpany focused on the acqui sition, exploration and
development of mineral resource properties. The Co mpany has an option to acquire a 60% interest
and title to the Kalum Property located in the Terrace area, British Columbia.
On behalf of Rex Resources Corp.
“Anthony Zelen”
Director
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Contact Information - For more information, please contact:
Anthony Zelen,
Director
Tel:778-338-5258
Email: [email protected]
Cautionary Note Regarding Forward-Looking Statements
Neither the 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. This news release may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements.