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Newsfile Corp Vancouver, British Columbia--(Newsfile Corp. - September 17, 2021) - ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") announced today a non-brokered private placement of flow-through units (the "FT Units") and non-flow-through units (the "NFT Units") for gross proceeds of up to $1,500,000 (the "Offering"). The Offering will be available to Canadian and international accredited investors. Red Cloud Securities Inc. of Toronto, Ontario, has agreed to act as a finder for ALX on a "best efforts" basis for the Offering. Up to 9,523,809 FT Units will be offered at a price of $0.105 per FT Unit consisting of one flow-through common share and one half of one non flow-through common share purchase warrant, and up to 5,263,157 NFT Units will be offered at a price of $0.095 per NFT Unit consisting of one common share and one common share purchase warrant. One whole common share purchase warrant from the FT Units will entitle the holder to purchase one non flow-through common share of the Company at a price of $0.14 for a period expiring 24 months following the closing date of the Offering. One common share purchase warrant from the NFT Units will entitle the holder to purchase one non flow-through common share of the Company at a price of $0.14 for a period expiring 24 months following the closing date of the Offering. Finder's fees will be payable to Red Cloud and other qualified finders in connection with the Offering consisting of 7.0% cash and 7.0% finder's warrants, with each finder's warrant exercisable at price of $0.095 for a period expiring 24 months following the closing date of the Offering. All the securities issuable will be subject to a four-month hold period from the date of closing, which is expected to occur on or about October 8, 2021. Proceeds from the sale of FT Units will be used for exploration programs on the Company's Saskatchewan uranium and gold properties, and on its Ontario nickel and copper properties. Proceeds from the sale of NFT Units will be used for general working capital. Vixen Gold Project Transaction Update ALX also announces that the transaction with First Mining Gold Corp. ("First Mining") (TSX: FF) for the Vixen Gold Project ("Vixen") announced on September 9, 2021 has closed (see ALX news release dated September 9, 2021). As prescribed by the terms of the option agreement dated September 7, 2021, the Company has received $250,000 in cash and 291,330 common shares of First Mining, which represent the first stage payments due to ALX under the terms of the Vixen option agreement. First Mining has the option to earn an initial 70% interest in Vixen by making cash payments totaling $550,000, the issuance of First Mining common shares totaling $400,000 to ALX, and by incurring at least $500,000 of expenditures at Vixen during the first three years of the option term. Upon completing the first stage of the earn-in, First Mining will hold, through its wholly-owned subsidiary company Gold Canyon Resources Inc. ("Gold Canyon"), a 70% interest in Vixen and will have an additional two-year period to acquire the remaining 30% interest in Vixen by electing to make a $500,000 cash payment to ALX and by the issuance of First Mining common shares to ALX totaling $500,000. In the event that First Mining elects not to complete the second stage of the earn-in, ALX and Gold Canyon will enter into a 70%-30% joint venture agreement with respect to Vixen. |