News: Rex Minerals raises $85 million

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Minerals explorer Rex Minerals Ltd (ASX:RXM) has raised $85 million to accelerate exploration at its Hillside copper discovery in South Australia.

The funds were raised through a share placement of 34 million new shares at $2.50 a share to institutional and sophisticated investors in Australia and overseas.

Rex will also launch a share purchase plan on the same terms of the placement to all existing shareholders.

The explorer says proceeds from the capital raising will be used for a two year exploration program aimed at moving its Hillside copper project towards a full feasibility study, and expanding the regional exploration program on the Pine Point Copper Belt in South Australia.

Rex Minerals posted a profit of $2.32 million for the 2010 fiscal year.