27/05/2020 - 11:44

Explorers raise $20.6m

27/05/2020 - 11:44

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Rox Resources, Kingston Resources and Core Lithium have received commitments to raise a combined $20.6 million under share placements, with part of the proceeds to go towards the companies' gold and lithium projects.

Explorers raise $20.6m
Rox is developing the Youanmi OYG project with joint venture partner Venus Metals Corporation. Photo: Venus

Rox Resources, Kingston Resources and Core Lithium have received commitments to raise a combined $20.6 million under share placements, with part of the proceeds to go towards the companies' gold and lithium projects.

West Perth-based Rox Resources is seeking to increase its 50 per cent ownership of the Youanmi gold project, announcing it had received commitments to raise $8.74 million from a share placement.

Rox is developing the Youanmi OYG project, located 480 kilometres north-east of Perth, with joint venture partner Venus Metals Corporation.

The project has a confirmed mineral resource estimate of 1.19 million ounces of gold.

Rox Resources managing director Alex Passmore said the capital raising would enable the company to increase its ownership of the project to 70 per cent.

“The company is now very well positioned to increase its interest in the Youanmi OYG joint venture, which is progressing towards development, and to aggressively accelerate its regional exploration programs across both its gold and nickel prospects,” Mr Passmore said.

Proceeds from the capital raising will also go towards continued exploration within the Youanmi tenements, with Rox also planning to update the project’s broader mineral resources.

Rox said it would also investigate the potential for a larger-scale project, as well as define a maiden resource estimate for Youanmi’s Grace prospect.

The company will issue approximately 364.5 million shares priced at 2.4 cents each, with Taylor Collison and Canaccord Genuity acting as joint lead managers to the placement, expected to settle on June 2.

Rox plans to raise up to a further $4 million under a share purchase plan on the same terms as the placement, with shareholders each able to subscribe for up to $30,000 worth of shares.

Rox Resources shares were down 3.7 per cent at 12:25pm AEST to trade at 2.6 cents.

Sydney-based Kingston Resources also announced a capital raising today, with the company having received commitments to raise $6.4 million under a share placement.

Kingston said the proceeds would go towards development of its Livingstone gold project in WA, as well as completion of a pre-feasibility study for its flagship Misma gold project in Papua New Guinea.

The company will issue 40 million shares priced at 16 cents each, with Canaccord Genuity acting as lead manager to the placement.

Kingston is seeking to raise up to a further $2 million from a share purchase plan, priced on the same terms as the placement.

Company shares were down 2.7 per cent at 1:55pm AEST to trade at 18 cents.

Meanwhile, Adelaide-based explorer Core Lithium announced it had received commitments to raise $5.5 million, with the company looking to progress its flagship Finnis project in the Northern Territory.

The company will issue around 130 million shares priced at 4.25 cents each, with Bell Potter Securities and Taylor Collison acting as joint lead managers to the placement.

Core Lithium will also seek a further $1.5 million from a share purchase plan.

Shares in the company were down 16.7 per cent at 2:05pm AEST to trade at 5 cents.

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