Chinese firm drops $12m Rox deal

An unnamed Chinese company has pulled out of a $12.5 million cash deal to buy a majority interest in Rox Resources' Myrtle zinc-lead project.

In a statement issued after market close, Rox said the Chinese company informed that it would not proceed with the memorandum of understanding which was signed late last year.

However, Rox said the Chinese entity advised there was potential for cooperation regarding the project.

The Chinese company had planned to buy up to an 80 per cent stake in Myrtle, located in the Northern Territory.

"Rox will continue to asses the best way forward for the project which will deliver value to shareholders," the company said.