West Perth-based junior Rox Resources has announced plans to raise up to $27 million, as it continues to aspire towards mid-tier production at its Youanmi gold project.
West Perth-based junior Rox Resources has announced plans to raise up to $27 million, as it continues to aspire towards mid-tier production at its Youanmi gold project.
Wednesday’s update follows news on July 24 when Stephen Dennis-chaired Rox told the market it would cost approximately $245 million to bring Youanmi, located in Western Australia’s Murchison region – with an average gold production target of 103,000 ounces per year.
This production would be made possible courtesy of a newly-constructed 750,000 tonne per annum processing plant.
Under the two-tranche $26 million placement, Rox said it would issue around 185.7 million new fully paid ordinary shares at an issue price of 14 cents apiece.
The placement price represents a 17.6 per cent discount to the Rox’s closing price prior to entering its trading halt on November 8 – along with a 24.3 per cent discount to the 15-day volume weighted average price.
Two of the junior’s major shareholders – QGold and Hawke’s Point – have committed a combined $18 million towards the placement, which will result in their stakes increasing to 19.98 and 19.88 per cent respectively.
Both Euroz Hartleys and Canaccord Genuity were appointed joint lead managers of the placement.
“The capital raising will see the Rox team well-funded to advance near-mine growth drilling, finalise the definitive feasibility study and commence parallel workstreams, including dewatering, to accelerate our path to early production at Youanmi,” Rox chief executive Phillip Wilding said.
“The recently completed pre-feasibility study at Youanmi outlined a high-grade, high-margin underground gold project with robust economics, and in a location with rich mining history and well-understood ground.
“We have a strong foundation to build on, and we look forward to updating the market as we advance the Youanmi gold project through the definitive feasibility study toward a final investment decision, targeted for the 2026 financial year.”
Alongside the placement, the junior will conduct a share purchase plan, in a bid to raise an additional $1 million.
Under the SPP, eligible participants have an opportunity to subscribe for a maximum of $30,000 worth of new shares.
Earlier this month, Rox announced it had received positive results from its latest series of assays from a 11,000m drilling program at Youanmi, which was comprised of both diamond and reverse circulation drilling.
At the time, Mr Wilding said the latest results would play a part in transitioning inferred areas of the site’s resource to a higher confidence indicated-based classification.
Rox shares last traded at 15.5 cents, down 9 per cent, as of 10.37am WST.
