PERTH (miningweekly.com) – Junior Rox Resources will raise up to A$5-million in a share placement and share purchase plan (SPP) to fund resource drilling and near-mine exploration at the Youanmi gold project, in Western Australia.

Binding commitments have been received for a A$4-million placement, under which 24.24-million new shares will be placed to institutional and sophisticated investors at a price of 16.5c each.

Rox’s largest shareholder, Hawke's Point, has subscribed for A$0.66-million worth of new shares in the company.

In addition to the placement, Rox will also undertake an SPP to raise a further A$1-million, allowing existing shareholders to subscribe for up to A$30 000 of additional shares in the company, also at a price of 16.5c each.

The issue price represented a 13.2% discount to Rox’s last closing price and a 19% discount to the company’s five-day volume weighted average share price.

The SPP will open on November 17 and close on December 1.

“Rox is delighted with the strong support for the placement and would like to thank existing shareholders for their continuing support, as well as welcoming a number of new investors to the company’s register,” said MD Rob Ryan.

“We anticipate the SPP will also be well supported by other eligible shareholders which, collectively, reflects the market’s confidence in our chosen commercialisation strategy for the Youanmi gold project. Pleasingly, we believe that investors have recognised the robustness and validity of the recently released scoping study for the Youanmi gold project, which details a conservative low-cost, high-return project targeting annual gold production of approximately 71 000 oz/y with an average gold head grade of 5.0 g/t gold for a total gold production target of approximately 570 000 oz over an initial eight-year life-of-mine.

“It is also a vote of confidence in Rox’s senior management team and board, which has the skills and experience to continue progressing drilling and feasibility activities at Youanmi and thereby build shareholder value for all Rox shareholders, and we look forward to updating the market in the near term in this regard,” said Ryan.