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- Gold and nickel explorer Rox Resources (RXL) is planning to raise $12.7 million through an institutional placement and share purchase plan
- The placement to institutional and sophisticated investors has been completed and was significantly oversubscribed, raising $8.74 million
- The company will also seek to raise an additional $4 million through a share purchase plan to eligible shareholders
- The estimated $12.7 million raised will be used to advance a number of Rox’s projects and strategies, including further drilling and exploration
- $3 million will also be allocated to increase the company’s stake in the Youanmi gold project joint venture from 50 per cent to 70 per cent
- Rox Resources is down 3.7 per cent today, with shares trading for 2.6 cents each
Gold and nickel explorer Rox Resources (RXL) is planning to raise $12.7 million through an institutional placement and share purchase plan (SPP).
Completed placement
The placement to institutional and sophisticated investors has been completed and was significantly oversubscribed.
Existing and new investors made firm commitments for $8.74 million, with over 364 million shares to be issued at 2.4 cents each.
This price represents a a 6.9 per cent discount to the 15-day volume-weighted average price of Rox shares and an 11.1 per cent discount to the last closing price.
Share purchase plan
The company will also seek to raise an additional $4 million through a share purchase plan to eligible shareholders.
Shares will be priced at 2.4 cents each as per the placement, which is a 10.3 per cent discount to the volume-weighted average price for the last five days prior to the record date.
Shareholders can subscribe for up to $30,000 worth of shares, and the company reserves the right to either accept oversubscriptions or to scale back the offer if need be.
Funding runway
The estimated $12.7 million raised will be used to advance a number of Rox’s projects and strategies.
$3 million will be allocated to increase the company’s stake in the Youanmi gold project joint venture from 50 per cent to 70 per cent.
A further $5.15 million will be spent at Youanmi to expand and accelerate drilling, to facilitate resource estimation work and to advance other studies.
Rox will also spend $2 million at the Fisher East nickel project to accelerate drilling at target zones and expand exploration in the area.
The remaining cash will be used to cover transaction costs and will be held as cash reserves for working capital requirements.
If the SPP is successful, Rox will be fully funded for works across its portfolio.
The strong support shown so far bodes well for Rox to take its projects to the next level.
Rox Resources is down 3.7 per cent today, with shares trading for 2.6 cents each as at 12:10 pm AEST.
