West Australian focused gold exploration and development company Rox Resources Limited (ASX:RXL) today announced it had received binding commitments to raise $4 million (before costs) via a placement of 10 million new fully paid ordinary shares to institutional investors, including Hawke’s Point, at an issue price of $0.40 per share.
- $4.0 million placement (before costs) to Institutional Investors at $0.40 per share
- Hawke’s Point to take up pro-rata entitlement, key new supportive shareholders join the register
- Issue price represents a 5% discount to the last closing price and a 6% discount to the 15-day VWAP
The Company received significant interest from key investors following the recent Youanmi Resource upgrade to 3Moz Au and successful metallurgical testwork for Youanmi ore.
The Placement grows the institutional shareholder component of the Company’s register from 17% to 22%, a stated objective of the Company. Hawke’s Point, which currently has a 13.18% interest in the Company is participating in the Placement on a pro-rata basis to its existing interest.
The new Shares will be issued pursuant to the Company’s existing placement capacity under Listing Rule 7.1A. Settlement of the Placement is expected to occur on or around Wednesday, 2 March 2022 and the new Shares will rank equally with the Company’s existing Shares on issue.
Canaccord Genuity (Australia) Limited and Taylor Collison Limited acted as Joint Lead Managers (“JLMs”) to the Placement. Tamesis Partners LLP acted as joint bookrunner with the JLMs.
Authorised for release to the ASX by the Board of Rox Resources Limited.