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- Rox Resources (RXL) is kicking off the 2021 financial year with a strong balance sheet
- After completing a private placement and retail entitlement offer over the June quarter, Rox had around $10.6 million cash in the bank at the end of June
- With roughly $1.5 million in quarterly expenses, Rox has enough money to last just over seven more financial quarters
- During the June quarter, Rox restarted drilling work at its Youanmi Gold Project after a brief COVID-19-induces drilling hiatus
- Drilling is expected to continue through to the end of 2020, with an updated mineral resource estimate on the way
- Rox Resources shares are currently trading over three per cent lower and worth 5.7 cents each
Junior explorer Rox Resources (RXL) has kicked off the 2021 financial year with a solid balance sheet and a steady drilling plan.
The company had to pause drilling at its flagship Youanmi Gold Project in Western Australia in early March due to COVID-19-related travel restrictions. However, as WA largely keeps the virus at bay, the company was able to restart drilling in the area in late May.
While drilling was on hold, Rox bolstered its balance sheet through an institutional share placement and a retail entitlement offer. The company netted itself $8.74 million in institutional investment and $4 million through the share purchase plan to mum and dad investors.
As such, Rox had a neat $10.57 million cash in the bank at the end of June. With around $1.5 million in cash burn over the March and June quarters, this means Rox has enough funds to operate for more than seven more financial quarters before cash starts to run dry.
Youanmi work
Since restarting its drilling programs, the company has been diligently plugging away with its work on its Youanmi Gold project.
The West Australian gold project sits 480 kilometres northeast of Perth.
Despite exploration being put on hold for a large chunk of the three-month period, the company still managed to drill 57 holes at Younami for a total of 5681 metres over the June quarter. Drilling is ongoing and expected to continue through the September and December quarters.
Results from Youanmi returned grades as high as 25 metres at 34.79 grams per tonne gold, including six metres at 140.7 grams per tonne.
The Youanmi Project has a mineral resource estimate of 12.4 million tonnes at 2.97 grams per tonne of gold for 1.19 million ounces. This estimate, however, is from April 2019, and Rox said an updated estimate is on the way in due course.
Despite the largely-positive announcement, Rox Resources shares are following the wider gold sector and trading 3.39 per cent lower today at 5.7 cents each. The company has a $113.95 million market cap.
