West Australian focused gold exploration and development company Rox Resources (ASX: RXL) refers to its previous announcement on 31 October 2022 which noted the all cash takeover offer for Cannon Resources Limited (Cannon) (ASX CNR) at A$0.45 per Cannon Share (Cannon Takeover).
Rox holds 8,553,130 Cannon Shares equal to approximately 10% of all Cannon Shares on issue as at the date of this announcement, which are subject to ASX imposed escrow restrictions until 12 August 2023.
Rox has considered the Cannon Takeover and its funding requirements and advises it intends to accept the Cannon Takeover for all its Cannon Shares, subject to:
(a) the conditions in ASX Listing Rule 9.5 being satisfied to permit Rox to accept the Cannon Takeover, including holders of at least half of Cannon Shares which are not subject to escrow accepting the Cannon takeover; and
(b) no superior proposal being publicly announced.
Based on the cash consideration of A$0.45 per Cannon Share, Rox would receive cash proceeds of approximately A$3.8 million for its Cannon Shares upon acceptance of the Cannon Takeover.
Funds from the Cannon Takeover, coupled with the recently announced $4 million Placement and $1 million Share Purchase Plan, will be utilised to progress resource drilling, near mine exploration and feasibility studies at the Company’s flagship Youanmi Gold Project.