Rox Resources (ASX:RXL) has this week completed and signed documentation for $350 million of debt facilities that will now be used to fund the development of its flagship Youanmi gold project in Western Australia.
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The completion of a syndicated facility agreement had wrapped up financing for the restart of the historic gold mine development and comes after Rox’s board approved the final investment decision (FID) in mid-March, paving the way for construction to begin and a first gold pour in mid-CY27.
FID approval followed the receipt of a development and closure proposal’s amendment approval from the WA Department of Mines, Petroleum and Exploration.
In early March the company received firm commitments from a syndicate of tier one banks through a binding credit-approved commitment letter and term sheet with Societe Generale, Sydney Branch, Sumitomo Mitsui Banking Corporation, The Hongkong and Shanghai Banking Corporation, and Westpac Banking Corporation, which are providing a $300 million senior secured project term loan facility, a $20 million cost overrun facility and a $30 million bank guarantee facility.
Rox’s managing director and CEO, Phill Wilding, said the explorer expects to make the first drawdown under the debt facilities in Q3 CY26.
“Signing the syndicated agreement is another significant achievement in securing the funding required to deliver Youanmi,” Mr Wilding said. “The support from an impressive selection of Australian and International banks indicates strong confidence in the Project and the team we have assembled to deliver it.
Looking forward, he said: “We will now work with the Syndicate Banks to achieve financial close, placing us in a position to commence drawdown of debt in the September 2026 quarter. Following our final investment decision and completion of the SFA, we are looking forward to commencing construction activities.”
Bulk earthworks will commence shortly in preparation for construction works, whilst the company finalises the remaining key contracts, allowing the company to remain on schedule for mine start-up.
Youanmi is scheduled to produce 117,000 ounces per annum over the initial seven-year life of mine; Rox is confident there’s still upside and is targeting production rate increases and mine life expansions with further drilling.
To that end, recent studies have identified a NPV8 of $1.4 billion and IRR of 69% (pre-tax) of $1.0 billion and IRR 55% (post-tax) at the base case of A$5,200 per ounce and an NPV8 A$2.4 billion and IRR 102% (pre-tax), $1.7 billion and IRR 81% (post-tax) at a spot gold price of A$7,000 per ounce.
RXL is down -1.12% to 44¢. Mkt cap $617.7M.
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