Ann: Rox Shareholders Overwhelmingly Approve Youanmi Transaction, page-2

There is dilution with this deal with the market cap growing to $120m but the valuation of the assets gained by Rox far outweigh the cost.

Paddy’s Lode, with a stunning first hit of 28m @ 34gt and a confirmed strike length of 200m and potential of 900m, is now 100% Rox. If the latest RC drilling at Paddy’s Lode finds Supergene enriched gold as Rox hopes we could see grades of oxide gold that dwarf anything discovered to date from the Youanmi Shear.

Similarly, Midway parallel lodes that could be as big as Paddy’s are also all ours. Plus Linda Gossan with 9m @ 15.6 g/t Au from the surface including 3m @ 35.2 g/t Au from 1m from the first hole. This is the kind of blind discovery that started Penny West and Penny North.

Rob Ryan and exploration manager Travis Craig are also convinced that more Penny’s lie hidden under the cover on strike with the Penny’s and the Youanmi Mine. In fact, the 80 kms of the Shear Zone is largely unexplored and with the exception of small prospects stakes on a couple of tenements Rox is the sole beneficiary.

The consolidation with Venus opens up the potential for Rox to get into production mining very high-grade ore similar to Penny North. 15 - 20g/t ensures a very low AISC , at nearby Penny North the AISC is only $633 oz.

The risk of the consolidation is a low ball TO from RMS which is a real danger imo. The Younami discoveries are a perfect fit for RMS with their large mining camp nearby. They would truck ore to their Checkers mill at Mt Magnet. RMS will be watching the results from Paddy’s Lode, Midway and Linda Gossan closely. As a guide, here is RMS’s bid for Spectrum that owned Penny North.

Ramelius is offering one of its shares for every 10 SPX shares and 1.7c per SPX share, which equates to about 15c per SPX share (or roughly $208m) — a 52 per cent premium to Spectrum’s last closing price of 9.9c on Friday.

A similar deal would give us only about 53 cps which greatly undervalues the short term potential of Rox let alone the mid and long term.

It doesn’t help that the Rox share price has been falling recently which potentially lowers a TO bid based on the short term VWAP.

Imo Rox needs more loyal instos on the share registry ASAP to head off a TO, perhaps Hawke’s Point will increase their stake or Rox will attract another insto?