VANCOUVER, British Columbia, Jan. 4, 2007 (PRIME NEWSWIRE) -- Trent Moore, VP, on behalf of the Board of Directors reports:
Running Fox (Pink Sheets:RFXRF) (TSX-V:RUN) has arranged a non-brokered private placement financing in the amount of $2,400,000. The majority of the financing is priced at 75 cents for a share and a warrant, with each warrant exercisable at $1.10 for one year and $1.50 in the second year. $280,000 of the financing is priced at $1.00 per unit for a flow through share and one-half of a non-flow through share purchase warrant, exercisable for one year at $1.25. There will be a finder's fee on a portion of the financing.
Warrants for the financing have a re-pricing mechanism due to the Company's planned and previously announced splitting off of a separate Energy NewPubCo. to create a new public company to enhance shareholder value. The repricing mechanism is as follows: Evaluation Date Repricing Mechanism: On the date that is 40 trading days after the date that the Company's proposed energy division spin-out begins to trade separately from the Company (the "Evaluation Date"), the Company will apply to the TSX to re-price the exercise price of the Warrants to a price that is a 30% premium over the preceding 30 day average trading price of the Company's shares. No re-pricing will occur if on the Evaluation Date the exercise price is less than a 30% premium to the trading price.
Running Fox is an energy sector Canadian small cap company with three distinct divisions:
1. Oil and Natural Gas Exploration and Production; 2. Energy Sector Field Services, Construction and Technology; and 3. Advanced High-Grade Gold Project in British Columbia.
The combined market cap for Running Fox's three divisions is currently less than $30 million Canadian. First nine months consolidated revenues were $5.150 Million, with net income prior to acquisition adjustments of $884,000.
The Company is well leveraged to natural gas prices with its Alberta operations, and its high-grade BC gold project provides upside and leverage to the price of gold. Visit www.foxgold.ca for further information.
Running Fox is working on further acquisitions and long-term cash flow development.
On behalf of the Board of Directors: Trent Moore, VP, Running Fox Resource Corp. (403) 742-0500 www.foxgold.ca
The Company relies on legislation applicable to forward looking statements, and seeks safe harbour.