PERTH (miningweekly.com) – Junior Rox Resources has announced plans to raise more than A$12-million to fund an increased stake in the Youanmi gold project, in Western Australia.
Rox has received binding commitments from institutional and sophisticated investors to raise an initial A$8.74-million through a placement priced at 2.4c each.
The company on Wednesday said that 364.48-million shares would be placed under this capital raise, with the placement price representing an 11.1% discount to the company’s last closing price, and a 6.9% discount to its 15-day volume weighted average share price.
In addition to the share placement, Rox will also undertake a share purchase plan (SPP) to raise a further A$4-million at the same price as the share placement.
Under the SPP, eligible shareholders would be given the opportunity to subscribe for up to A$30 000 worth of new Rox shares, with more than 83.3-million shares on issue.
The funds raised will be used to increase Rox’s shareholding in the Youanmi joint venture from 50% to 70% at a cost of A$3-million, and to accelerate drilling at Youanmi.
Rox will also accelerate drilling work at the Fisher East nickel project, where the company is targeting high-grade structural repeats of nickel mineralisation and additional regional exploration.