Rex Resources Sets Reverse Takeover Deal to Acquire Bathurst Holdings and New Brunswick Mining Assets

Rex Resources Corp. ( (TSE:OWN) ) has shared an update.

Rex Resources Corp. has signed a definitive arm’s length acquisition agreement with Bathurst Holdings Inc. for a reverse takeover transaction that will see Rex acquire all of Bathurst’s shares via a three‑cornered amalgamation under Ontario corporate law, issuing 25 million Rex shares to Bathurst shareholders on a one‑for‑one basis. Upon completion, Bathurst’s owners will effectively take control of Rex, which will become the resulting issuer focused on advancing Bathurst’s New Brunswick polymetallic assets and is expected to be listed as a Tier 2 Mining Issuer on the TSX Venture Exchange, with the projects subject to a 2% net smelter returns royalty and a partial buyback option. In tandem with the deal, Bathurst plans a private placement of subscription receipts priced at $0.25 to raise between $2.5 million and $3.5 million, which would leave the resulting issuer with about 57.2 million shares outstanding if both the reverse takeover and maximum financing are completed, providing fresh capital to fund project advancement.

Spark’s Take on TSE:OWN Stock

According to Spark, TipRanks’ AI Analyst, TSE:OWN is a Underperform.

Rex Resources Corp. is currently in a challenging financial position, with significant profitability and cash flow issues. Technical indicators suggest a continued bearish trend, and unfavorable valuation metrics further weigh on the stock. While corporate events such as board changes and share consolidation may provide some strategic direction, the company’s core financial difficulties remain the primary concern.

To see Spark’s full report on TSE:OWN stock, click here.

More about Rex Resources Corp.

Rex Resources Corp., listed on the TSX Venture Exchange and Frankfurt Stock Exchange, is a junior mining company that will pivot its business toward mineral exploration and development in New Brunswick through a planned reverse takeover of private miner Bathurst Holdings Inc. Bathurst, led by an experienced mining and exploration team, is focused on restarting and advancing polymetallic projects in New Brunswick, including the Stratmat deposit and the Halfmile underground mine, which host zinc, lead, silver, copper and gold and benefit from existing site infrastructure and strong provincial relationships.

Technical Sentiment Signal: Sell

Current Market Cap: C$653.8K

See more insights into OWN stock on TipRanks’ Stock Analysis page.