Rox launches A$200m equity raise for WA gold mine
ASX-listed Rox Resources on Friday unveiled a A$200-million capital raise to fund the equity component of developing its Youanmi gold project, in Western Australia.
The placement drew strong backing from domestic and international institutions, including a A$60-million cornerstone investment from L1 Capital. Existing major shareholders Hawke’s Point and QGold will also participate, committing about A$18-million and A$25-million, respectively.
The company will also undertake a share purchase plan to raise an additional A$10-million at the same issue price of A$0.35 a share.
Rox MD and CEO Phill Wilding said the capital raising reflected growing confidence in Youanmi as a high-grade, high-margin project and followed the release of a robust definitive feasibility study (DFS) for the project.
“The placement capitalises on this momentum, with the level of support from existing and new shareholders being a testament to the compelling and robust business case for the Youanmi gold project, and the team that will deliver it."
On Thursday, Rox announced the results of the DFS, which confirmed that Youanmi was technically and economically robust with compelling investment metrics, including an aftertax net present value of A$965-million and an internal rate of return of 55%, with a rapid 1.9-year payback.
Over an initial seven-year life, Youanmi will deliver pretax free cashflow of A$2.25-billion. On average, the mine will produce 117 000 oz/y at an all-in sustaining cost of A$1 978/oz.
The proceeds of the placement will fund project development capital expenditure, processing plant and equipment, site infrastructure including a 350-room camp and wastewater treatment facilities, upgrading site roads and all necessary surface dewatering infrastructure, the underground decline development at United North and Pollard and rehabilitation of the Youanmi main decline.
First gold is targeted for mid-2027 with mill construction starting in early 2026.
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