Rox Resources’ A$40M Raise De-Risks Youanmi Project but Hinges on Shareholder Approval

Strong Institutional Backing for Youanmi

Rox Resources Limited (ASX: RXL) has successfully secured approximately A$40 million through an institutional placement aimed at accelerating the development of its flagship Youanmi Gold Project in Western Australia. The placement attracted robust support from both domestic and offshore institutional investors, underscoring confidence in the project’s high-grade potential and the company’s strategic execution.

The capital raising will boost Rox’s proforma cash position to around A$57.1 million, providing the financial flexibility necessary to advance critical early works ahead of the Definitive Feasibility Study (DFS) scheduled for late 2025.

Accelerating Early Development Activities

The funds will be directed towards several key workstreams designed to de-risk and expedite the project’s pathway to production. These include the early commencement of underground development at the United North and Pollard declines, rehabilitation of the Youanmi Main portal and decline, and the advancement of infrastructure such as camp construction. Additionally, detailed engineering and design of the process plant will begin, alongside extensions to existing evaporation ponds to support dewatering efforts.

Managing Director and CEO Phill Wilding highlighted that this placement capitalises on the growing momentum behind Youanmi, which is emerging as a significant, high-grade gold mining operation. He emphasized that the strong investor support reflects the project’s fundamentals and Rox’s capability to deliver value.

Placement Structure and Next Steps

The placement is structured in two tranches. The first tranche, raising approximately A$35.9 million through the issue of nearly 120 million shares at A$0.30 each, a 16.7% discount to the last closing price, is expected to settle by mid-May 2025. The second tranche, raising about A$4.1 million, is subject to shareholder approval anticipated at a general meeting in late June 2025.

Joint lead managers Euroz Hartleys Limited and Canaccord Genuity (Australia) Limited facilitated the placement, which excludes a Share Purchase Plan due to regulatory constraints following a recent capital raise.

Strategic Implications for Rox Resources

This capital injection significantly de-risks the Youanmi project by enabling parallel progress on early works and the DFS, potentially shortening the timeline to production. The Youanmi Gold Project boasts a total mineral resource of 2.3 million ounces of contained gold, with historical production of approximately 667,000 ounces at a high grade of 5.47 g/t Au before its closure in 1997.

With gold prices at elevated levels, Rox Resources is well positioned to leverage its strong balance sheet and project fundamentals to deliver sustained shareholder value. The company’s focus on early underground development and infrastructure sets a solid foundation for the next phase of growth.