Melbourne, Australia, 21 September 2007 – LAWFUEL – The Legal Newswire – Baker & McKenzie advised Rex Minerals Limited on its Initial Public Offering. Rex Minerals, which raised A$7 million, successfully listed on the Australian Stock Exchange on 20 September 2007. Rex Minerals closed its first day of trading on ASX at a 20% premium to its issue price of 25 cents.
The Baker & McKenzie team was led by Richard Lustig, Melbourne based corporate partner, supported by senior associate, Riccardo Troiano. Manager and Lead Broker to the Offer was Asandas (Australian Stockbroking and Advisory Services Limited).
Rex Minerals is a new listed exploration company focused on copper-gold projects in South Australia and gold projects in Victoria. Led by industry expert geologist Steven Olsen, formerly with Ballarat Goldfields, Rex Minerals has assembled a management team with proven corporate, operations and exploration track records. The team’s strategy is to acquire highly prospective gold and copper projects and to apply their exploration skills to realise the full potential of those projects. Rex Minerals has begun implementing this strategy through the acquisition of a number of copper-gold projects in South Australia and gold projects in Victoria.
Rex Minerals has the support of some quality companies from within the resources industry, including Lihir Gold Limited, Avoca Resources Limited and Lion Selection Limited.
Richard Lustig said, “The success of the IPO and the fact that the non-underwritten offer was fully subscribed despite recent volatile market conditions is a testament to the company’s strong management team and high quality projects.”
Richard Lustig further said, “We have been involved in several floats in the resources space in recent times. Each one typically has its own interesting aspects. This offer was slightly unusual in that it involved Rex Minerals entering into a two year contract with Titleline Drilling Pty Ltd for future drilling services whereby the drilling contractor will be paid by a mixture of consideration including future shares. Rex Minerals obtained a waiver from ASX to permit it to issue these shares without shareholder approval without reducing its future placement capacity. This will not reduce the company’s funding placement capacity going forward.”