Rox Resources Raises $36M in First Placement Tranche, Eyes $4M More
Rox Resources has successfully raised $36 million through the first tranche of its $40 million placement, with the second tranche pending shareholder approval. This capital injection aims to support its gold exploration projects in Western Australia.
- Completed Tranche 1 placement raising $36 million
- Issued nearly 120 million shares at $0.30 each
- Tranche 2 of $4 million awaits shareholder approval
- Placement shares issued under existing ASX capacity rules
- Funds to support Youanmi Gold Project and other exploration activities
Capital Raise Milestone
Rox Resources Limited (ASX: RXL) has announced the successful completion of the first tranche of its two-part capital raising initiative, securing $36 million before costs. The company issued 119,833,335 fully paid ordinary shares at an issue price of $0.30 per share, leveraging its existing placement capacity under ASX Listing Rules 7.1 and 7.1A. This significant capital injection marks a pivotal step in Rox’s strategy to advance its gold exploration and development projects in Western Australia.
Pending Shareholder Approval for Second Tranche
The second tranche of the placement, targeting an additional $4 million, remains contingent on shareholder approval expected at a meeting scheduled for late June 2025. This final tranche will complete the company’s planned $40 million capital raise. The phased approach allows Rox to efficiently manage dilution and maintain regulatory compliance while positioning itself to accelerate exploration and development activities.
Strategic Focus on Youanmi and Beyond
Rox Resources is primarily focused on its Youanmi Gold Project, a historically significant site with a total mineral resource of 2.3 million ounces of gold. The project benefits from existing mining leases and infrastructure, offering a strong foundation for potential production resumption. The company also holds interests in the Mt Fisher - Mt Eureka Gold and Nickel Project, further diversifying its portfolio. The fresh capital is expected to underpin ongoing exploration programs and feasibility studies, aiming to unlock additional value from these assets.
Regulatory Compliance and Market Confidence
The shares issued in Tranche 1 were done so without disclosure under Part 6D.2 of the Corporations Act, relying on existing placement capacity. Rox has confirmed full compliance with relevant provisions of the Corporations Act and ASX Listing Rules, providing transparency and reassurance to investors. This adherence to regulatory frameworks is crucial in maintaining market confidence as the company navigates its growth trajectory.
Looking Ahead
With the bulk of the capital raise now secured, Rox Resources is well-positioned to advance its exploration and development agenda. The upcoming shareholder meeting will be a critical juncture for the company, determining the completion of the placement and the full realization of the $40 million funding target. Investors will be watching closely for updates on how these funds will be deployed and the impact on project timelines and valuations.
Bottom Line?
Rox’s capital raise sets the stage for accelerated exploration, but shareholder approval for the final tranche remains a key hurdle.
Questions in the middle?
- Will shareholders approve the second tranche to complete the $40 million raise?
- How will Rox allocate the new funds across its Youanmi and Mt Fisher projects?
- What impact will this capital raise have on Rox’s share price and market valuation?
