REX American Resources (REX)

[gharma]

Orex and Astral Announce Merger by Way of Plan of Arrangement
http://www.orexminerals.com/s/NewsReleases.asp?ReportID=552381&_Type=News&_Title=Orex-and-Astral-Announce-Merger-by-Way-of-Plan-of-Arrangement

October 15, 2012

12 to 1 Astral for Orex shares

Astral's key assets are the Los Crestones Project in western Mexico, and the Jumping Josephine Project in southeastern British Columbia.

The Los Crestones Project is an early stage gold-silver-copper property located in the gold-silver belt of the Sierra Madre Occidental of Sinaloa State, western Mexico. The property totals 4,168 ha and is located approximately 110km from the state capital of Culiacan. The property hosts numerous mineralized showings and small scale workings and is prospective for vein and breccia-hosted low sulphidation epithermal gold and silver. Best drill results to date included 5 m averaging 39 g/t Au, 93 g/t Ag and 2.13% Cu.

The Jumping Josephine Project is a prospective exploration property with the potential to host an economic gold deposit and warrants further advanced exploration work. It is a large contiguous claim holding which covers 35,735 ha in the West Kootenay region of Southeastern British Columbia. The area is within a mining district boasting historical production in excess of 9 Moz of high-grade gold. The property is well-located close to existing infrastructure and approximately 40km north of Teck-Cominco's smelting operations in Trail. Drilling to date has identified a NI 43-101 Compliant Resource Estimate (using 0.5g/t Au cut-off) that has defined: 34,000 oz Au Indicated (363,000 tonnes grading 2.95 g/t Au) and 30,000 oz Au Inferred (448,000 tonnes grading 2.08 g/t Au) [June 24, 2011]. Astral has a 60% joint venture interest in the Project.

. . .

If the Transaction is completed, Orex will have approximately 46,615,762 common shares issued and outstanding, of which current Orex shareholders will own approximately 95.6% and former Astral shareholders will own approximately 4.4%.