- Rox Resources (RXL) raises $7 million to fuel exploration and development at its Youanmi gold project in Western Australia
- The placement comprises the issuance of 35 million new shares at 20 cents each
- The company received firm commitments from Hawkes Point and ASX-listed Venus Metals
- The proceeds will aid a pre-feasibility study, further drilling of near-mine targets, and testing of high-priority exploration targets across RXL’s consolidated tenure
- RXL shares were down 2.22 per cent, trading at 22 cents at market close
Rox Resources (RXL) has secured commitments for a $7 million placement to fuel exploration and development at its Youanmi gold project in Western Australia.
The funds will be raised through the issuance of 35 million new shares at 20 cents apiece.
Along with a substantial interest shown from shareholders, the company has also received strong support from Hawkes Point (RRL), and Venus Metals (VMC).
Hawke’s Point (RRL) has committed to subscribe for 7.5 million shares to raise $1.49 million, increasing its shareholding from 8.8 to 9.9 per cent.
Meanwhile, Venus Metals has subscribed for 1.25 million shares to raise $250,000, and RXL Directors have committed to 600,000 shares to raise $120,000.
The issue price represents an 11.1 per cent discount to the last closing price, a 13.9 per cent discount to the 7-day volume weighted average price (VWAP) and a 12.5 per cent discount to the 15-day VWAP.
“Consolidating the ownership over the Youanmi gold project and regional tenure position places Rox in a highly-strategic position,” RXL Managing Director Robert Ryan said.
“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 placements proceeds will be put toward a pre-feasibility study for the Youanmi mine restart, further drilling of near-mine targets, and testing of high-priority exploration targets across the consolidated tenure.
RXL shares were down 2.22 per cent, trading at 22 cents at market close.