Photo by: Bloombeg
PERTH (miningweekly.com) – A strategic review has resulted in junior Rox Resources taking the decision to commercialise its Reward zinc project, in the Northern Territory.
The company said on Tuesday that options to commercialise the Reward project could include sale to a third party or a spin-out into a separate company.
“This has been a comprehensive review that has enabled us to evaluate the strategic options for each project and to determine what we think will be the best outcome for our shareholders,” said Rox MD Ian Mulholland.
The Reward project was currently subject to an earn-in and joint venture agreement with Teck Australia, with Rox holding a 49% interest in the project, which could be diluted to 30% if Teck completed its earn-in funding obligations.
The company has advised Teck of its intention at the Reward project.
Rox has valued its current interest in the project at a minimum of A$14.25-million.
Meanwhile, Rox on Tuesday also announced its intention to undertake a A$2.1-million capital raise, given that the commercialisation of the Reward project could likely extend into the new year.
Some 33.33-million shares would be placed at a price of 1.5c each to clients of Patersons Securities to raise an initial A$500 000, while an entitlement issue would be launched offering shareholders one new share for every ten shares held, under the same terms and conditions as the share placement.
“We are pleased to have these options available to us. A transaction to realise value for the Reward zinc asset would be transformative for the company and allow us to pursue a number of growth opportunities both organically within the current project portfolio and by external transactions,” Mulholland said.