West Australian gold exploration company Rox Resources (ASX: RXL) has entered a binding agreement to sell its Mt Fisher Gold Project in Western Australia to High-Tech Metals Limited (ASX: HTM).
The transaction, valued at $1.5 million in cash alongside equity and royalty components, is expected to be finalised by late March 2025.
The deal includes:
- Cash Consideration: $1.5 million, comprising a non-refundable exclusivity deposit of $50,000 and $1.45 million upon completion.
- Equity: 1,000,000 fully-paid ordinary shares in HTM at a deemed issue price of $0.15 per share, subject to a 12-month escrow period.
- Royalty: A 1.0 per cent Net Smelter Return (NSR) royalty on the tenements, excluding certain areas already subject to existing royalties.
Completion of the transaction is contingent upon HTM obtaining shareholder approval for the issuance of shares under ASX Listing Rule 7.1 and securing all necessary regulatory consents and approvals.
The divestment aligns with Rox Resources’ strategy to focus on its flagship Youanmi Gold Project, which boasts a mineral resource estimate of 16.2Mt at 4.4g/t for 2.3Moz of gold.
Rox CEO Phillip Wilding highlighted that the sale strengthens the company’s balance sheet while retaining exposure to potential upside through HTM shares and the NSR royalty.
Wilding expressed confidence in HTM’s ability to advance the Mt Fisher project, stating: “Mt Fisher is a highly prospective tenement package, and we believe HTM is well-positioned to drive value and take the project forward.
“The sale would realise value for Rox shareholders by bolstering our financial position and supporting development at Youanmi.”
High-Tech Metals aims to unlock significant exploration potential at Mt Fisher through a targeted drill program and resource expansion efforts.
The project currently hosts a JORC Mineral Resource Estimate of 3.52Mt @ 1.65g/t Au for 187,000oz gold.
Exploration will focus on high-priority targets such as Damsel and Dam prospects, with drilling set to commence shortly after acquisition completion.
This transaction represents a strategic shift for both companies, enabling Rox Resources to concentrate on its high-grade Youanmi Gold Project while providing High-Tech Metals with an opportunity to expand its exploration footprint in one of Western Australia’s promising gold regions.
