Wedoany.com Report-Nov. 17, Rox Resources, listed on the ASX, announced on Friday a A$200 million capital raise to cover the equity portion for advancing its Youanmi gold project in Western Australia. The offering received solid participation from institutional investors in Australia and abroad, highlighted by a A$60 million anchor commitment from L1 Capital. Current key stakeholders Hawke’s Point and QGold contributed approximately A$18 million and A$25 million, respectively.

Additionally, the company plans a share purchase program to secure a further A$10 million at the issuance price of A$0.35 per share.

Rox Managing Director and CEO Phill Wilding described the fundraising as evidence of increasing assurance in Youanmi's potential as a high-grade operation with strong margins. This follows the publication of a detailed definitive feasibility study for the site.

“The placement capitalises on this momentum, with the level of support from existing and new shareholders being a testament to the compelling and robust business case for the Youanmi gold project, and the team that will deliver it."

The study, released on Thursday, validated the project's technical viability and financial attractiveness. It projected an after-tax net present value of A$965 million, an internal rate of return of 55%, and a payback period of 1.9 years.

During the first seven years of operation, the mine is expected to generate A$2.25 billion in pre-tax free cash flow. Annual output averages 117,000 ounces at an all-in sustaining cost of A$1,978 per ounce.

Funds from the placement will support various development aspects. These include capital costs for the project, acquisition of processing equipment, construction of site facilities such as a 350-room accommodation village and water treatment systems, improvements to access roads, surface water management structures, underground access ramps at United North and Pollard, and restoration of the primary Youanmi decline.

Initial gold production is scheduled for mid-2027, with processing plant assembly commencing in early 2026.

The Youanmi site benefits from established infrastructure in a proven gold region, facilitating efficient progression from study to execution. The feasibility analysis incorporated extensive drilling data, metallurgical testing, and engineering designs to ensure reliable projections.

High-grade zones within the deposit contribute to elevated margins, positioning the operation competitively in varying gold price environments. The rapid payback enhances appeal for funding partners.

Institutional involvement signals alignment with the outlined timelines and economics. The share purchase plan extends participation opportunities to retail holders, promoting broader ownership.

Development sequencing prioritizes critical path items like decline advancement and plant foundations to meet the production target. Environmental approvals and community consultations form integral parts of the preparation phase.

As construction approaches, procurement strategies will focus on securing long-lead items and skilled contractors. The camp and utilities support a workforce buildup during peak activity.

This financing milestone enables transition to the implementation stage, unlocking value from the resource base. Steady execution will be key to realizing the forecasted cash flows and returns.

Overall, the capital structure supports a disciplined approach to building a sustainable mid-tier gold producer in Western Australia. The project's metrics reflect thorough planning and favorable geology, driving stakeholder confidence.