- WA gold exploration and development company Rox Resources (RXL) receives binding commitments to raise $4 million via a share placement
- The money will be raised through the issue of 24.24 million new fully-paid ordinary shares to institutional and sophisticated investors at 16.5 cents each
- In addition to the placement, Rox will be undertaking a share purchase plan (SPP) to raise a further $1 million with eligible shareholders able to subscribe for up to $30,000
- Rox will use the money from the placement and SPP to progress resource drilling, and near mine exploration and feasibility studies at its flagship Youanmi Gold Project
- Shares in Rox are down 7.89 per cent and trading at 17.5 cents at 1:41 pm AEDT
WA gold exploration and development company Rox Resources (RXL) has received binding commitments to raise $4 million via a share placement.
The money will be raised through the issue of 24.24 million new fully-paid ordinary shares to institutional and sophisticated investors at 16.5 cents each.
This price represents a 13.2 per cent discount to Rox’s last closing price of 19 cents on November 8 and a 19 per cent discount to the five-day volume-weighted average price.
Subject to shareholder approval, $660,000 worth of shares will be issued to Rox’s largest shareholder, Hawke’s Point.
In addition to the placement, Rox will be undertaking a share purchase plan (SPP) to raise a further $1 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will be priced the same as the placement of 16.5 cents.
Notably, the commitment from Hawke’s Point assumes that $1 million is raised under the SPP and if less is raised, the commitment will reduce to the amount necessary to keep its current 13.18 per cent shareholding.
Rox will use the money from the placement and SPP to progress resource drilling, and near mine exploration and feasibility studies at its flagship Youanmi gold project.
Shares in Rox were down 7.89 per cent and trading at 17.5 cents at 1:41 pm AEDT.