Rox Resources Limited has executed a A$350 million syndicated debt facility agreement with major banks to fund the development of its Youanmi Gold Project, targeting first gold production by mid-2027.
- A$350 million debt facilities signed with tier one banks
- Includes A$300 million senior secured loan, A$20 million cost overrun, and A$30 million guarantee facilities
- First drawdown expected in Q3 2026, subject to customary conditions
- First gold pour targeted for mid-2027
- Strong bank support reflects confidence in project and management
Debt Financing Secured for Youanmi Development
Rox Resources Limited (ASX:RXL) has completed and signed documentation for a A$350 million syndicated debt facility to fund the development of its 100%-owned Youanmi Gold Project in Western Australia. The agreement follows the company’s earlier announcement on 9 March 2026 that the project was fully funded, and formalises the financing package with a consortium of tier one banks.
The debt package comprises a A$300 million Senior Secured Project Term Loan Facility, a A$20 million Cost Overrun Facility, and a A$30 million Bank Guarantee Facility. The syndicate banks involved include Societe Generale (Sydney Branch), Sumitomo Mitsui Banking Corporation (SMBC), HSBC, and Westpac Banking Corporation.
Drawdown and Production Timeline
Rox Resources expects the first drawdown under the debt facilities to occur in the September quarter of 2026, subject to customary conditions precedent typical for project financing of this nature. The company is targeting first gold production by mid-2027, aligning with its previously stated development schedule.
Managing Director and CEO Phill Wilding described the signing of the Syndicated Facility Agreement as a significant milestone in securing the necessary funding to deliver the Youanmi Gold Project. He noted the strong support from both Australian and international banks as an indicator of confidence in the project and the management team assembled to execute it.
Project Context and Next Steps
The Youanmi Gold Project, located near Mt Magnet approximately 480 kilometres northeast of Perth, hosts a global mineral resource of 12.1 million tonnes at 5.6 grams per tonne for 2.2 million ounces of gold. Rox Resources has a clear strategic plan to move the project into production, with construction activities expected to commence following financial close.
This financing milestone follows Rox Resources’ Final Investment Decision and the recent approval of the Mining Development and Closure Proposal amendment, which enables construction to proceed. The company has already begun initial construction activities including bulk earthworks and contract awards, as outlined in previous announcements.
Drawdown of the debt facilities remains subject to conditions precedent, and the timing of financial close and subsequent milestones may vary. The company has not provided updated price guidance or detailed cost estimates in this announcement.
For further context on Rox Resources’ progress, see the company’s recent funding and development updates and debt facility announcement.
Bottom Line?
The completion of the syndicated debt facility marks a key step towards Youanmi’s development, though execution risks and timing uncertainties remain ahead.
Questions in the middle?
- What are the specific conditions precedent required before the first drawdown can occur?
- How will Rox Resources manage potential cost overruns beyond the A$20 million facility?
- What are the key risks that could affect the targeted mid-2027 first gold pour timeline?