West Australian gold exploration and development company Rox Resources (ASX: RXL) has received firm commitments from new and existing institutional and sophisticated investors to raise approximately $26 million (before costs).
The company will issue approximately 185.7 million new fully paid ordinary shares via a two-tranche placement at an issue price of $0.14 per share – representing a 17.6% discount to the last closing price and 16.1% discount to the 5-day VWAP.
Eligible shareholders will also have the opportunity to participate in a share purchase plan (SPP) to raise a maximum of $1 million at the same issue price as the placement. The company said no over subscriptions would be accepted.
HIGHLIGHTS
- $7 million commitment (no broker fees) from QGold Pty Ltd (an entity controlled by Christopher Wallin).
- Following completion of the Placemen Mr Wallin is anticipated to directly hold 10.04% of Rox, and together with his associates (including Venus Metals Corporation Limited) will have a relevant interest in approximately 19.98% of Rox shares
- $11 million commitment (no broker fees) from major shareholder Hawke’s Point.
- Following completion of the Placement Hawke’s Point will hold 19.88% of Rox
- Rox to also undertake an unmarketable parcel sale facility
Euroz Hartleys Limited and Canaccord Genuity (Australia) Limited acted as joint lead managers to the Placement.
Rox Resources Chief Executive Officer Phill Wilding said:
“We are delighted to have received such strong support from our long-standing shareholders, and we are excited to take our new investors on the journey to restarting production at the high gold-grade Youanmi Gold Project in Western Australia.
“The Capital Raising will see the Rox team well-funded to advance near-mine growth drilling, finalise the Definitive Feasibility Study and commence parallel workstreams, including dewatering, to accelerate our path to early production at Youanmi.
“The recently completed Pre-Feasibility Study at Youanmi outlined a high-grade, high-margin underground gold project with robust economics, and in a location with rich mining history and well-understood ground. We have a strong foundation to build on, and we look forward to updating the market as we advance the Youanmi Gold Project through the Definitive Feasibility Study toward a Final Investment Decision, targeted for FY26.”
The proceeds from the Capital Raising will be used to:
- Accelerate near-mine growth drilling through a ~35,000m drilling program
- Fnalise the Definitive Feasibility Study for the Youanmi Gold Project
- Prepare and commence early dewatering activities to accelerate path to production
- General working capital
