Ann: Investor Presentation - 2023 Annual General Meeting, page-41

As many holders would know Rox IPO’d its nickel assets into Cannon Resources that was then taken over by Kinterra Capital for $45m. Rox shareholders received most of the money with large holders like Hawke’s Point and MD Alex Passmore doing especially well out of the deal. Rox received $3.8m for its holding in Cannon.

Kinterra went on to add to the Cannon nickel resources with a major expansion at the Sabre project. Kinterra got a bargain but one needing a lot of capital that Cannon would have struggled to raise. Because Canadian based Kinterra is a private equity firm with no public accounting duties it is hard to know just how good Cannon resources are but they are highlighted by Kinterra and they just raised US$565m (oversubscribed) to secure critical mineral assets for battery development.

The good news for Rox here is that they may finally be able to sell off their Eureka project which is on strike from the Cannon projects so an obvious target for Kinterra who have long expressed an interest in the purchase.

Apart from needing capital, the problem for Rox in holding non core assets (Fisher Gold and Eureka) is that they are expensive to hang onto. The WA government increases tenement charges as time goes by without being mined. Non core assets currently cost Rox $1m per year so they are keen to sell/ IPO or JV them.

A cashed up Kinterra is now looking for battery metal projects and an extension to their Cannon holdings is a logical step. Eureka has highly prospective areas that have never been explored.

Kinterra will probably buy Eureka and do very well again from former Rox assets. But Rox will also benefit from a cash injection at exactly the right time when it faces exploration and feasibility study costs. If possible, Rox would like to raise funds through non core asset sales to take it through to the PFS in June next year after which alternative funding (see my previous post) should fund the company right up to a DFS in Q4, 2024.