Rex Resources closes $600,000 private placement

On December 12, 2025, Rex Resources announced the closing of a non-brokered private placement for gross proceeds of $600,000. The company issued 10 million common shares at a price of $0.06 per share. The proceeds are designated to cover costs associated with the proposed reverse takeover (RTO) transaction with Bathurst Holdings Inc., including audit, legal, due diligence, and regulatory fees. A director of the company participated in the financing. The shares are subject to a statutory hold period of four months and one day, as well as a contractual hold period until November 30, 2026.

This financing is a necessary survival measure, not a sign of fundamental strength. The company's June 30, 2025 financials revealed it was virtually out of cash ($14,816) with negative working capital of over $200,000, making it impossible to fund the administrative costs of the proposed RTO.

• Positive: The $600,000 raised keeps the company solvent and allows it to proceed with the potentially transformative RTO with Bathurst Holdings. Without this bridge financing, the transaction would likely have failed. The participation of a director provides a minor vote of confidence in the deal's completion.

• Negative: The terms are highly unfavorable to existing shareholders. The $0.06 issue price represents a 25% discount to the last traded price of $0.08 and is at the 52-week low. More importantly, issuing 10 million shares is extremely dilutive, more than doubling the post-consolidation outstanding share count of approximately 8.2 million shares. This is a clear indication of the company's weak negotiating position due to its desperate financial situation.

In essence, this is a routine "keep the lights on" financing for a shell company. While it enables the larger strategic pivot, the cost is significant dilution at a rock-bottom valuation. The true value driver is not this financing, but whether the RTO with Bathurst can be completed on favorable terms, including a subsequent, much larger financing.

Rex Resources was a junior exploration company focused on its Rex property in British Columbia, which showed potential for copper-gold mineralization.

However, the company has pivoted entirely. On September 8, 2025, it announced a non-binding Letter of Intent (LOI) to acquire Bathurst Metallic Corp. in a reverse takeover (RTO). If completed, Rex will be renamed, and its new flagship assets will be Bathurst's polymetallic projects in New Brunswick, specifically the past-producing Halfmile underground mine and the Stratmat deposit. The company is effectively a shell being recapitalized to acquire these new assets.