Yesterday, Rox had one of the sharpest sell-offs in five years, with the highest volume for a year. But why?
Yes, raising $40m is a big dilution, and the discount was quite high.
But the market completely ignored the value added to the company.
This ann was a clear signal to investors not to sell off, and the best investment minds on this thread seized the opportunity to buy at 30 cents.
The latest comments:
With a pro-forma cash position of A$57.1 million (before costs) on completion of placement, Rox has significantly de-risked the delivery of the Youanmi Gold Project and can bring forward project development workstreams in parallel to completing the Definitive Feasibility Study which is on track for late 2025.
Securing these funds significantly de-risks the delivery of Youanmi and, importantly, provides the balance sheet flexibility needed to accelerate development activities in parallel to delivering the Definitive Feasibility Study in late CY25.
Funds will be used for the construction of initial infrastructure for mining crews, set-up for pre-mill construction, and to pursue long-lead items such as processing plant equipment.
This will allow the commencement of early works on up to two exploration declines at United North and Pollard, allowing earlier access and establishment of underground exploration drilling platforms ahead of production.
Rox Resources has laid the foundations to accelerate our pathway to production, and we are in a strong position to leverage the outstanding fundamentals of the Youanmi Project and record gold prices to deliver sustained value for all shareholders.
But there is more: Rox wasn’t short of cash, so this unplanned $40m raise was something special.
It was almost certainly the benefit of having a large international billion-dollar fund grab a stake of Rox.
The fund is hiding behind nominee companies, so we won’t see it in the top 20.
Soon, Rox will be looking for Capex cash to build its mine.
The fund that already has a stake in the company is likely to provide the finance and cut a mate's rates deal for doing so.
Helping Rox helps themselves.
Diversification of insto and funds stakeholders so that Rox is not beholden to any one of them has long been an unrealised dream.
Note that Hawke’s Point held sway over Capricorn Metals when they were near a similar stage of development.
Out of the blue, a miner with Hawke’s Point’s support, swooped in with a low-ball TO offer..
Capricorn rejected the offer, commenting that “when we talked with non-Capricorn advisors, they were firmly against the deal.
Rox is now in a position to control its destiny to become a billion-dollar company.
It has a world-class team of mine builders to achieve that goal.
One example, look at Rox’s Mining Manager, Oliver Keene’s profile on Linkedin.
Looking forward to seeing the Rox presentation in Sydney, unfortunately not live streamed, but it will be public soon afterwards.
(20min delay)