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Rox Resources (ASX: RXL) has received as much as $350 million in debt facilities from a syndicate of leading global banks to fully fund the development of the Youanmi gold project in Western Australia.
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The company entered into a binding credit-approved commitment letter and term sheet with Societe Generale, Sumitomo Mitsui Banking Corporation (SMBC), The Hongkong and Shanghai Banking Corporation (HSBC), and Westpac Banking Corporation to obtain the $300 million senior secured project term loan facility, $20 million cost overrun facility and $30 million bank guarantee facility.
Rox’s MD and CEO, Phill Wilding, said the newly-signed agreement with the tier one syndicate of banks follows an extensive due diligence process, including technical, environmental and social, legal, insurance and financial model review by independent consultants on behalf of the lenders.
“The commitment of debt funding from an impressive selection of Australian and international banks is yet another major milestone for Rox as we accelerate our pathway to production for the Youanmi gold project,” he said.
“The debt funding process included a thorough due diligence process by the banks’ independent technical expert, which provides further validation of the robustness of Youanmi and our expectation that it will be a high-margin operation.”
Rox will now engage with the banks to achieve financial close, setting it up to commence drawdown of debt in the September CY26 quarter.
“The project is now fully funded through to production, and we look forward to making a final investment decision (FID) later in this quarter, before commencing construction activities,” Mr Wilding explained.
The historic Youanmi gold project is near Mt Magnet, ~480 km northeast of Perth. The high-grade, high-margin project hosts a global mineral resource of 12.1 million tonnes at 5.6 grams per tonne (g/t) for 2.2 million ounces of gold.
In late February, Rox had started drilling for an infill and resource growth program for the initial United North levels to identify additional high-grade ounces.
It had also secured long-lead items for plant construction following the engagement of preferred EPC contractor MACA Interquip Mintrex.
RXL is steady at 51.5c today.
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