West Australian gold exploration and development company Rox Resources (ASX: RXL) has successfully raised approximately $26 million through a placement to institutional and sophisticated investors, with an additional $1 million to be raised through a share purchase plan (SPP).
The capital-raising initiative aims to accelerate the development of the high-grade Youanmi Gold Project in Western Australia.
The Youanmi Gold Project is one of the highest-grade undeveloped gold deposits in a Tier-1 mining jurisdiction, boasting a total resource of 2.3 million ounces at 4.4 g/t Au.
The project’s indicated resource stands at 1.56 million ounces, representing approximately 68 per cent of the total mineral resource estimate.
A recently completed pre-feasibility study outlined Youanmi as a high-grade, high-margin underground gold project with robust economics.
The project’s location in an area with rich mining history and well-understood ground provides a strong foundation for development.
The company will issue approximately 185.7 million new fully paid ordinary shares at $0.14 per share, representing a 17.6 per cent discount to the last closing price.
Notable commitments include:
- $7 million from QGold Pty Ltd, controlled by Christopher Wallin
- $11 million from major shareholder Hawke’s Point
Rox Resources CEO Phill Wilding stated: “The Capital Raising will see the Rox team well-funded to advance near-mine growth drilling, finalise the definitive feasibility study and commence parallel workstreams, including dewatering, to accelerate our path to early production at Youanmi.”
The proceeds will be used to:
- Conduct a ~35,000-metre near-mine growth drilling program
- Finalise the definitive feasibility study
- Prepare and commence early dewatering activities
- Provide general working capital
With a significant near-mine exploration target of between 1.1 and 1.8 million ounces and new discoveries at Midway and Paddy’s Lode, Youanmi presents substantial growth potential.
Rox Resources is targeting a final investment decision for FY26, aiming to capitalise on the current favourable gold market conditions.
As the company progresses towards production, investors will be keenly watching for updates on the definitive feasibility study and further exploration results from this promising Western Australian gold project.
