Rox Resources (RXL) has raised $4 million via a placement following success at its Youanmi Gold Project in Western Australia’s Murchison region.
The companyhalted trade yesterdayin anticipation of the placement announcement with the company now receiving binding commitments to raise $4 million.
Placement of 10 million shares to institutional investors has been undertaken at an issue price of 40 cents per share, representing a 5 per cent discount to the last closing price and a 6 per cent discount to the 15-day volume-weighted average price (VWAP).
The company received significant interest from key investors following arecent Youanmi resource upgradeandsuccessful metallurgical test workfor Youanmi ore.
Earlier in the week, Rox reported itintersected further high-grade gold mineralisationfrom drilling at Youanmi.
A notable investor was asset manager Hawke’s Point whichpreviously invested $11 millionin Rox, holds a 13.18 per cent interest in the company and is participating in the placement on a pro-rata basis to its existing interest.
The $4 million placement (before costs) placement grows the institutional shareholder component of the company’s register from 17 per cent to 22 per cent, meaning the company has achieved a previously stated objective.
Settlement of the placement is expected to occur around next Wednesday, and the shares will rank equally with the company’s existing shares on issue.
Shares in RXL were trading 2.38 per cent higher at 43 cents at 1:20 pm AEDT.