Rox unlocks Youanmi construction funding with first debt drawdown
Rox Resources has reached financial close on A$350 million of debt facilities for the Youanmi Gold Mine, removing the conditions that had stood between the funding package and construction spending. The company has initially drawn A$90.2 million in project debt and used a further A$4 million bank guarantee facility allocation.
- Financial close achieved on A$350 million of debt facilities
- A$90.2 million drawn under the senior secured project debt facility
- A$4 million bank guarantee facility utilisation supports the LNG facility
- A$229.8 million remains available under the project debt and cost overrun facilities
- First gold remains targeted for mid-2027
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Rox Resources Limited (ASX:RXL) has moved Youanmi from a funded project on paper to one with debt cash flowing into construction, reaching financial close on A$350 million of facilities and drawing A$90.2 million under its senior secured project term loan.
The company also used A$4 million of its A$30 million bank guarantee facility to support construction and operation of the LNG facility. Together, the initial utilisations total A$94.2 million, although only the A$90.2 million project debt drawdown represents cash proceeds for development activities.
Debt funding reaches construction phase
Rox said all conditions precedent to financial close and the initial utilisations had been satisfied. The facilities were documented through the syndicated facility agreement announced on 7 April 2026 and are provided by a syndicate of Australian and international banks.
Initial project debt proceeds will fund a wide range of work at Youanmi, including engineering, procurement and construction activities, equipment procurement, underground mine development, infrastructure, owner costs and general project expenditure. Further drawdowns are expected progressively in line with the approved development schedule and funding requirements.
A$229.8 million remains available
Rox said A$229.8 million remains available for drawdown under the Project Debt Facility and Cost Overrun Facility, giving the company additional funding capacity as construction and commissioning proceed. The announcement does not disclose interest rates, repayment terms or any updated estimate of total project costs, so the size of the commitment is clearer than its eventual financing burden.
Managing Director and CEO Phill Wilding described the milestone as a “transformational” step and said Rox was now in the delivery phase, with construction accelerating and first gold still targeted for mid-2027. That timetable now faces the more prosaic test of procurement, underground development, infrastructure delivery and cost control - the work the first drawdown is intended to finance.
Bottom Line?
Financial close removes a major funding condition, but the next test is whether staged drawdowns translate into construction progress and first gold by mid-2027 without exhausting the remaining facility capacity.
Questions in the middle?
- How quickly will Rox draw the remaining A$229.8 million as construction advances?
- Will project spending remain within the funding structure through commissioning?
- Can Youanmi meet the mid-2027 first-gold target as underground and infrastructure work continues?
Sources
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Financial Close and First Drawdown (opens in a new tab)Official market announcement. Rox Resources Limited · 5 Oct 2026 · roxresources.com.au
