Rox Resources

Rox announces $40m placement to de-risk and accelerate Youanmi gold project delivery

  • 5 May
Gold exploration and development company Rox Resources (ASX: RXL) will raise $40 million (before costs) via a placement to new and existing international and domestic institutional and sophisticated investors.

With a pro-forma cash position of A$57.1 million (before costs) on completion of placement, Rox has significantly de-risked the delivery of the Youanmi Gold Project and can bring forward project development workstreams in parallel to completing the Definitive Feasibility Study which is on track for late 2025.

HIGHLIGHTS

  • High-quality domestic and offshore institutional investors support plan to start early works development of the Youanmi Gold Project, WA
  • Funding significantly de-risks delivery of the Youanmi Gold Project and will allow the Company to bring forward key workstreams including:
    • Early commencement of underground development for United North and Pollard declines
    • Rehabilitation of the Youanmi Main portal and decline
    • Advance infrastructure early works, including camp construction and associated infrastructure ◦ Commencement of process plant detailed design and engineering
    • Additional dewatering (including extensions to existing evaporation ponds)

Rox Resources Managing Director & Chief Executive Officer Phill Wilding commented:

“The Youanmi Gold Project is shaping up as a significant, high-grade gold mining operation, and Rox Resources is gaining global recognition as an Australian gold growth story.

“The Placement capitalises on this momentum, with the level of support from existing and new shareholders being a testament to the strength of the Youanmi Gold Project, and the team that will deliver it.

“Securing these funds significantly de-risks the delivery of Youanmi and, importantly, provides the balance sheet flexibility needed to accelerate development activities in parallel to delivering the Definitive Feasibility Study in late CY25.

“Funds will be used for construction of initial infrastructure for mining crews, set-up for pre-mill construction, and to pursue long-lead items such as processing plant equipment.

“This will allow the commencement of early works on up to two exploration declines at United North and Pollard, allowing earlier access and establishment of underground exploration drilling platforms ahead of production.

“Rox Resources has laid the foundations to accelerate our pathway to production, and we are in a strong position to leverage the outstanding fundamentals of the Youanmi Project and record gold prices to deliver sustained value for all shareholders.”

Indicative pathway to production

Gerard McArtney

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