Rox’s A$200M Raise Hinges on Shareholder Approval Amid Production Timeline Risks

Strong Institutional Backing for Youanmi

Rox Resources Limited (ASX, RXL) has announced a significant capital raise of approximately A$200 million through a two-tranche institutional placement. This funding round attracted a mix of high-quality domestic and international investors, including a substantial cornerstone commitment of A$60 million from L1 Capital, a globally recognised investment manager. Existing major shareholders Hawke’s Point and QGold also reinforced their support with combined contributions of around A$43 million.

The placement shares were issued at A$0.35 each, representing a near 20% discount to the recent volume-weighted average price, a strategic move to ensure strong uptake and swift capital injection. Upon completion, Rox will hold a proforma cash balance of approximately A$243.7 million, positioning the company with a robust financial foundation to advance its flagship Youanmi Gold Project.

Funding the Path to Production

The proceeds from the placement will fully fund the equity component of the Youanmi Gold Project’s development. This includes capital expenditure on the processing plant and site infrastructure such as a 350-room camp, wastewater treatment facilities, upgraded roads, and essential surface dewatering systems. Additionally, funds will support underground decline development at key sites including United North and Pollard, as well as the rehabilitation of the Youanmi Main decline.

Resource definition and exploration drilling are also earmarked for funding, with underground drilling scheduled to commence in the second quarter of 2026 and extensional drilling from both surface and underground starting in the third quarter. A regional exploration program is planned to begin early next year, underscoring Rox’s commitment to expanding its resource base.

Share Purchase Plan and Shareholder Engagement

Alongside the placement, Rox is offering a Share Purchase Plan (SPP) to eligible shareholders to raise an additional A$10 million at the same issue price. This initiative allows existing investors to participate without brokerage fees, reinforcing shareholder inclusivity as the company progresses towards production.

The conditional tranche of the placement, amounting to A$134 million, awaits shareholder approval expected at a general meeting in mid-December 2025. This step is critical to finalising the full equity funding package and advancing the project’s construction timeline.

Outlook and Market Positioning

Managing Director and CEO Phillip Wilding highlighted the project’s high-grade, high-margin nature and the strong investor confidence reflected in the placement. With equity funding secured, Rox is well positioned to conclude debt negotiations, which have already attracted significant interest from leading financiers. The company anticipates first gold production by mid-2027, marking a pivotal milestone in establishing Rox as Western Australia’s next gold producer.

This capital raise not only de-risks the project’s delivery timeline but also enables the procurement of long-lead items essential for construction. The strategic timing aligns with favourable gold market conditions, potentially enhancing shareholder value as the project advances.