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Rox Resources (ASX:RXL) - Managing Director, Alex Passmore
Managing Director, Alex Passmore
Source: The Market Herald
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  • Rox Resources’ (RXL) Youanmi Gold Project is set to get an $11 million boost from mining financier Hawke’s Point
  • The companies entered a binding subscription agreement for Hawke’s Point to subscribe for $11 million worth of RXL shares at 3.5 cents each — marking a 5.1 per cent discount to the 15-day volume-weighted average price
  • This comes with one free-attaching option for every two shares subscribed for
  • In return for the investment, Hawke’s Point will get a 13.3 per cent stake in Rox Resources
  • Over the next 12 to 18 months, Rox will use the money for reverse circulation and diamond drilling, scoping studies, technical work and a definitive feasibility study
  • Rox is up 10.8 per cent and shares are trading at 4.1 cents

Rox Resources (RXL) has entered a binding subscription agreement with Hawke’s Point to progress the development of its Youanmi Gold Project in WA.

Under the agreement, Hawke’s Point and certain affiliates will subscribe for 314,285,714 new shares in Rox at 3.5 cents per share through a placement.

The issue price represents a 5.1 per cent discount to the 15-day volume-weighted average price (VWAP) and a 6.9 per cent discount to the 30-day VWAP.

In addition, Hawke’s Point will get 157,142,857 options, which are exercisable at 7 cents each for up to four years from the issue date.

As a result of Hawke’s Point’s cornerstone investment, Rox Resources will get $11 million to put towards its Youanmi Gold Project. In return, Hawke’s Point will have a 13.3 per cent stake in the company.

“The investment by Hawke’s Point is just its third in Australia and demonstrates confidence in the Rox team and the Youanmi Gold Project,” Rox Resources Managing Director Alex Passmore said.

This investment decision follows extensive due diligence work at Youanmi and supports Rox’s goal of bringing the gold mine into production over the next 12 to 18 months.

Specifically, Rox will use the money to conduct reverse circulation and diamond drilling as well as scoping studies, technical work and a definitive feasibility study.

It will also allocate around $910,000 to its Mt Fisher and Mt Eureka gold projects.

Rox is up 10.8 per cent and shares are trading at 4.1 cents at 10:12 am AEDT.

RXL by the numbers
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