Rox Resources Ltd (ASX:RXL) has received binding commitments from institutional and sophisticated investors to raise A$8.74 million by way of a share placement as part of a $12.74 capital raising as it progresses ownership of the Youanmi OYG Joint Venture towards 70%.
A total of 364.48 million shares will be issued in the placement at a price of 2.4 cents, which represents an 11.1% discount to the last closing price and a 6.9% discount to the 15-day VWAP of Rox shares.
With the placement Rox welcomes several new institutional investors to its share register, providing a strong endorsement for the company’s growth strategy in both gold and nickel.
Rox will also offer a share purchase plan (SPP) to raise up to an additional $4 million from eligible shareholders at the same price as the placement.
Strong institutional support
Managing director Alex Passmore said: “Rox is delighted with the strong institutional support for the placement.
“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 programs across both its gold and nickel projects.”
Together the placement and SPP are expected to raise up to A$12.7 million, placing the company in a strong position to ramp-up exploration and resource development programs.
Key Youanmi objectives
Rox’s key priorities at the Youanmi JV with Venus Metals Corporation Limited (ASX:VMC):
- 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 the 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; and
- Investigate the potential for a larger-scale project which could commercialise the broader resources at Youanmi.