Gold and nickel company Rox Resources on Thursday announced an agreement with Hawke’s Point to subscribe for $11-million in new fully paid ordinary shares in Rox, plus one free attaching option for every two shares subscribed.
Rox will place 314 285 714 shares to Hawke’s Point, the mining finance arm of TFG Asset Management, in consideration for an issue price of 3.5c a share. The issue price is a 5.1% discount to the volume-weighted average market price over the 15 days ended March 17.
On Thursday, Rox traded at 4.2c a share.
“The investment by Hawke’s Point is just its third in Australia and demonstrates confidence in the Rox team and the Youanmi gold project,” said Rox MD Alex Passmore.
The investment decision supports Rox's strategy of acquiring and exploring Youanmi, which has a mineral resource estimate of 12.4-million tons at 2.97 g/t gold for 1.19-million ounces of gold, including a near-surface portion of ten-million tonnes at 1.65 g/t gold for 532 000 oz.