Australian gold and nickel company, Rox Resources Limited (ASX: RXL) today announced that it has entered into a binding subscription agreement with Hawke’s Point (RRL) L.P. for Hawke’s Point to subscribe for $11 million in new fully paid ordinary shares in Rox, plus one free attaching option in Rox for every two shares subscribed for.
Rox to issue $11m in equity to highly regarded asset manager Hawke’s Point equating to a holding of 13% in the Company.
Cornerstone investment by Hawke’s Point to support further exploration and transition to mining at Youanmi Gold project.
The investment decision of Hawke’s Point comes after extensive due diligence on the Youanmi Gold Project and supports Rox’s strategy of acquiring and exploring the Youanmi Gold Project with a forward looking objective of bringing the project into production. The investment from Hawke’s Point underpins the Company’s exploration and development plans over the coming 18 months.
These plans comprise additional drilling in near mine and resource extension areas, such as Link and Junction zones as previously announced. In parallel, Rox will commence a review of existing mineral resource assets within the project area as part of a transition to mining. This will include metallurgical, hydrogeological, geotechnical and environmental studies to underpin an updated and optimised development plan.
Youanmi shows strong potential to be a high-grade, high-return gold operation. Rox’s work programs for the coming 6 to 9 months are focussed on delivering these studies with the primary aim of adding substantial value to the existing Youanmi project assets, in parallel to on-going exploration.
Rox Resources Managing Director Alex Passmore commented:
“The investment by Hawke’s Point is just its third in Australia and demonstrates confidence in the Rox team and the Youanmi Gold Project. Hawke’s Point and Rox share a common exploration and development philosophy for Youanmi which we look forward to progressing rapidly from here.