Rox Resources Prices Share Purchase Plan at $0.35, Targeting $10M Raise
Rox Resources has opened a $10 million Share Purchase Plan at a 19.9% discount, inviting eligible shareholders to invest in the development of its Youanmi Gold Project. The offer runs through mid-December, aiming to bolster exploration and working capital.
- Share Purchase Plan (SPP) opened to eligible shareholders in Australia, New Zealand, UK
- Target raise of approximately A$10 million at A$0.35 per share, a 19.9% discount
- Maximum subscription per shareholder capped at A$30,000
- Funds earmarked for Youanmi Gold Project development, exploration, and working capital
- Offer non-underwritten with potential scale back if demand exceeds target
Rox Resources Opens Share Purchase Plan
Rox Resources Limited (ASX, RXL), a Western Australia-based gold exploration and development company, has officially opened its Share Purchase Plan (SPP) as part of a broader capital raising strategy. The SPP, announced in November, offers eligible shareholders in Australia, New Zealand, and the United Kingdom the opportunity to purchase new shares at a discounted price of A$0.35 each. This price represents a significant 19.9% discount to the recent volume weighted average market price, aiming to incentivize shareholder participation.
Details and Terms of the Offer
The plan allows shareholders to invest between A$2,000 and A$30,000, with the company targeting to raise approximately A$10 million before costs. The offer is non-underwritten, meaning Rox Resources is not guaranteed to raise the full amount, and the company reserves the right to scale back applications if demand exceeds the target. The SPP opened on 3 December 2025 and is scheduled to close on 16 December 2025, with new shares expected to be issued and commence trading on the ASX by 23 December 2025.
Purpose of the Capital Raising
Proceeds from the SPP will primarily support the ongoing development and construction of the Youanmi Gold Project, a flagship asset for Rox Resources located in the Murchison region of Western Australia. The funds will also be allocated to resource definition and exploration drilling, as well as general working capital needs. This follows the release of a Definitive Feasibility Study (DFS) in November 2025, which outlined compelling financial metrics and growth potential for the project, including a projected mine life of nearly seven years and robust cash flow forecasts.
Risks and Considerations
While the SPP presents an opportunity for shareholders to increase their stake at a discounted price, Rox Resources has disclosed a comprehensive range of risks associated with its operations. These include the speculative nature of mineral exploration, regulatory and environmental challenges, potential delays in project development, and market volatility. The company also highlights the possibility of future capital requirements beyond this raising, which could lead to further dilution or financing challenges.
Investor Participation and Next Steps
Eligible shareholders are encouraged to participate promptly due to the possibility of early closure or extension of the offer period. Applications must be made via BPAY or electronic funds transfer, with no brokerage or transaction fees payable. Rox Resources’ board, including Non-Executive Chairman Stephen Dennis, has authorized the release of the SPP documents and continues to monitor the capital raising progress closely. Investors will be watching the subscription levels and any scale back decisions closely, as these will influence the company’s funding position and share dilution.
Bottom Line?
Rox Resources’ SPP is a pivotal step in funding Youanmi’s development, but subscription uptake and future capital needs will be key to watch.
Questions in the middle?
- Will demand for the SPP exceed the A$10 million target, triggering a scale back?
- How will the market react to the dilution impact from the new shares issued?
- What are the prospects for additional funding beyond this SPP to fully develop Youanmi?
