West Australian gold exploration and development company Rox Resources Limited (ASX: RXL) has announced that it has received binding commitments to raise US$7.0M via a placement of 35M new fully paid ordinary shares in the company to institutional and sophisticated investors at an issue price of US$0.20 per share.
Rox Resources’ managing director, Mr Robert Ryan, said the company was very pleased with the strong response from investors to the capital raising, particularly considering the current challenging conditions in equity markets, “This is testament to the quality and significant potential of our key asset – the Youanmi Gold Project – and reflects the excellent work we have completed this year,”
“Consolidating the ownership over the Youanmi gold project and regional tenure position places Rox in a highly-strategic position. An in-depth targeting process is underway over the consolidated regional tenure that incorporates all available geochemical date and new geophysical targets that extend from north of the Youanmi mine area to well south of the high-grade Penny West gold mine.”
The company’s substantial shareholders have both participated in the placement, with Hawke’s Point L.P. committing to subscribe for approximately 7.5M shares to raise approximately US$1.49M, resulting in an increase in their shareholding from 8.80% to 9.99%. Venus Metals Corporation Limited has committed to subscribe for approximately 1.25M shares to raise approximately US$0.25M.
Additionally, Rox directors have committed to subscribe for approximately 0.6M shares to raise approximately US$0.12M.
The issue of the remaining approximately new 25.7M shares will be pursuant to the company’s existing placement capacity under Listing Rule 7.1A. Rox expects to issue the shares under the placement on or around 29 August 2023.
The company has stated that proceeds will be used progress its drilling and regional exploration programmes at the company’s 100%-owned Youanmi Gold Project, WA.
To find out more, please visit www.roxresources.com
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