Rox tops up war chest with $8.7m placement, increases stake in Youanmi gold project
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Special Report: Rox Resources has completed an $8.74m share placement and is now moving to increase its interest in the Youanmi OYG joint venture to 70 per cent.
The placement of 364.4 million shares priced at 2.4c each to institutional and sophisticated investors reflects the ongoing successes that the company has enjoyed at the Youanmi project.
Rox Resources (ASX:RXL) says the addition of several new institutional investors to its share register is a strong endorsement for its growth strategy in both gold and nickel.
The company is also looking to raise up to $4m through a share purchase plan to eligible shareholders at the same 2.4c price as the placement, which represents an 11.1 per cent discount to the last closing price.
“Rox is delighted with the strong institutional support for the placement. I also look forward to a high level of interest in the SPP,” managing director Alex Passmore said.
“The company is now very well positioned to increase its interest in the Youanmi OYG JV to 70 per cent, which is progressing towards development, and to aggressively accelerate its regional exploration programs across both its gold and nickel projects.”
Rox will allocate $3m from the capital raising to increase its interest in the Younami OYG JV from 50 per cent to 70 per cent.
The company will also assume management of the regional JVs with Venus Metals (ASX:VMC) once the interest is exercised.
The remaining proceeds will be used to accelerate drilling and carry out additional studies at Youanmi and accelerate drilling at Rox’s Fisher East nickel project.
The company plans to continue exploration to leverage recent successes and enhanced regional understanding, define a maiden resource for the Grace prospect and update the project’s broader resources to include newly identified shallow gold mineralisation near historic open pits and in previously untested zones in the Youanmi granite.
Passmore recently told Stockhead that the company was aiming to have a maiden resource for Grace in the second half of 2020.
Additionally, Rox will start an investigation of potential development scenarios for the Youanmi gold project which includes a high-grade starter project that takes in the Grace prospect and other nearby shallow resources along with the potential for a larger-scale project that could commercialise the broader resources at Youanmi.