Raising To Fund Increased Youanmi Interest
Rox Resources Limited (ASX: RXL) has received binding commitments from institutional and sophisticated investors to raise gross proceeds of A$8.74m by way of a share placement.
Taylor Collison and Canaccord Genuity acted as Joint Lead Managers to the Placement. Tamesis Partners LLP acted as European Bookrunner. The Placement was significantly oversubscribed.
With this Placement the company has welcomed several new institutional investors to its share register, providing a strong endorsement for the Company’s growth strategy in both gold and nickel.
The company has also announced it will offer a share purchase plan (SPP) to raise up to A$4 million from eligible shareholders at the same price as the placement.
Managing Director, Alex Passmore,said that together the Placement and SPP are expected to raise gross proceeds of up to A$12.74 million, placing the Company in a strong position to ramp up exploration and resource development programs.
“Rox is delighted with the strong institutional support for the Placement. I also look forward to a high level of interest in the SPP,” Mr Passmore said.
“The company is now very well positioned to increase its interest in the Youanmi OYG JV to 70%, which is progressing towards development, and to aggressively accelerate its regional exploration programmes across both its gold and nickel projects.”
Proceeds from the Placement enables Rox to increase its ownership of the Youanmi OYG JV from 50% to 70%. The company will also move to assume management of the regional JVs once this option is exercised and its interest in the regional JV’s is earned.
This collectively will see Rox well-positioned to drive an accelerated exploration strategy across the largest tenement package in the highly prospective Youanmi greenstone belt.
The company’s exploration and development focus at Youanmi is to:
- Continue with ongoing exploration, leveraging of recent success and enhanced regional understanding
- Define a maiden resource estimate for the Grace Prospect (work well advanced before this placement)
- Update the Project’s broader mineral resources, with the inclusion of newly identified shallow gold mineralisation located near historic open pits and in previously untested zones in the Youanmi Granite.
- Commence investigation of potential development scenarios available to the Company (and JV) at the Youanmi Gold Project including a high-grade starter project taking in the Grace Prospect and other nearby shallow resources.
- Investigate the potential for a larger scale project which could commercialise the broader resources at Youanmi.