Western Australia-focused gold exploration and development company Rox Resources has raised $4 million via a placement of 24.24 million new fully paid ordinary shares an issue price of 16.5 cents per share.
The company’s largest shareholder, Hawke’s Point, bought $0.66m of shares, subject to shareholder approval.
The fundraising was well supported by new and current shareholders and provides Rox with the funds to progress resource drilling, near mine exploration and feasibility studies at the flagship Youanmi gold project 9in WA as it heads toward development.
In addition to the placement, Rox will offer all of its existing eligible shareholders the opportunity to subscribe for up to a maximum of $30,000 worth of shares each at an issue price of 16.5 cents under a share purchase plan, to raise an additional $1m.
Managing director Rob Ryan said the company believed investors had recognised the robustness and validity of the recently-released scoping study for Youanmi, which details a conservative low-cost, high-return project targeting annual gold production of about 71 kilo ounces per annum over an initial eight-year life of mine.