Rox raises $4m via placement, SPP to be launched

HIGHLIGHTS:

• Binding commitments received for a $4.0 million placement (before costs) to sophisticated and professional investors at $0.165 per share
• Issue price represents a 13.2% discount to the last closing price and 19.0% discount to the 5-day VWAP
• Share Purchase Plan offer to all eligible shareholders to raise $1.0 million (with the ability to accept over subscriptions) at the same issue price as the Placement
• Rox Resources’ largest shareholder, Hawke’s Point, has committed  to  participate  and  maintain  its  current shareholding of 13.18%

The fund raising was well supported by new and current shareholders and provides the Company with the funds progress its studies at the Youanmi Gold Project, WA.

In addition to the Placement, Rox will offer all of its existing eligible shareholders the opportunity to subscribe for up to a maximum of $30,000 worth of Shares each at an issue price of $0.165 per Share under a share purchase plan (SPP), to raise an additional $1 million (before costs).

Funds from the Placement and SPP will be utilised to progress resource drilling, near mine exploration and feasibility studies at the Company’s flagship Youanmi Gold Project as it heads toward development.

Hawke’s Point has committed to subscribe for c4.0 million Shares under the Placement to raise c$0.66 million. Hawke’s Point’s commitment of c$0.66 million assumes that $1 million (before costs) is raised under the SPP. If less than $1 million is raised under the SPP, Hawke’s Point’s c$0.66 million commitment will reduce to the extent necessary to retain its current shareholding of 13.18% after the issue of Shares under the Placement and SPP. Alternatively, if the Company elects to accept over subscriptions in excess of $1 million under the SPP, Hawke’s Point has committed to subscribe for such additional number of Shares required to retain its current shareholding of 13.18% after the issue of Shares under the Placement and SPP.

The issue of Shares to Hawke’s Point is subject to the Company obtaining shareholder approval at a general meeting to be held in or around early January 2023 (Meeting). Further details on the Meeting time and venue will be provided in the notice of meeting (Notice) to be dispatched to shareholders shortly.

The Shares under the Placement will be issued to institutional and sophisticated investors (excluding Hawke’s Point) pursuant to the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Settlement of the Placement (excluding Hawke’s Point) is expected to occur on or around Tuesday, 15 November 2022. The new Shares will rank equally with the Company’s existing shares on issue.

Canaccord Genuity (Australia) Limited, Taylor Collison Limited and RM Corporate Finance Pty Ltd acted as Joint Lead Managers to the Placement.

Rox Managing Director Rob Ryan commented:

“Rox is delighted with the strong support for the placement and would like tothank existing shareholders for their continuing support, as well as welcoming anumber of new investors to the Company’s register. We anticipate the SharePurchase Plan will also be well supported by other eligible shareholders which,collectively, reflects the market’s confidence in our chosen commercialisationstrategy for the Youanmi Gold Project.

“Pleasingly, we believe that investors have recognised the robustness andvalidity of the recently released Scoping Study for the Youanmi Gold Project,which details a conservative low-cost, high-return project targeting annual gold production of approximately 71koz per annum with an average gold head grade of 5.0g/t Au for a total gold production target of approximately 570koz over an initial 8-year life of mine.

“It is also a vote of confidence in Rox’s senior management team and Board,which has the skills and experience to continue progressing drilling and feasibility activities at Youanmi and thereby build shareholder value for all Rox shareholders, and we look forward to updating the market in the near term in this regard.”
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