De-risking the Youanmi restart

After producing a credible, low Capex Scoping Study Rox will be moving quickly to further de-risk the Youanmi restart.

The next steps are to produce a Feasibility Study and then a Definitive Feasibility Study . Note that the Scoping Study already contains much of the FS information so that could be close.

These studies are not expensive but Rox will have to convert more inferred gold to indicated and measured and drilling is the big ticket item.

How much drilling is needed will depend on its success, Rox may enjoy a high conversion rate of inferred to indicated gold and perhaps $4m will be enough? If not it could be more, perhaps $6m to get to a DFS? On the other hand, if Rox has a large capital to spend the company will grow the production resource and realise some of the large untapped potential of Youanmi to produce a much more impressive DFS to present to financers. .

Here are the options for raising capital.

An insto share issue

A rights issue to instos and retail share holders

The problem with both is that the share price is low and any SI will be dilutive. Rox will not want to dilute the share registry cheaply. If they have to it will be a small CR to further derisk with the FS and then raise capital again from a rerated share price too fund the DFS.

Sell Rox’s stake in Cannon

Alex engineered the successful Cannon IPO and would never agree with this. But now..?

The problem here is that this does not raise a lot but perhaps enough to get to a FS and a higher share price and basis for a CR that does not cheaply dilute the share registry? But Cannon is close to having a commercial nickel deposit with potential to double or triple its market cap. Rox would be reluctant to sell their stake in Cannon.

Sell Fisher Gold

Fisher is an early stage project and Rox’s focus is on Youanmi.

Rox previous planned to IPO Fisher in 2018 as Helios Gold at a value of $6.5m when the price of gold was around AU 1,830 oz but they cancelled the float. Since then Rox has spent several million in exploration and drilling that has substantially increased the resource JORC at Fisher and the price of gold is much higher. Cashed up tier 1 gold companies would be definitely be interested in Fisher.

Just speculation but $7m to $10m?

If Rox announce an updated resource JORC for Fisher this will be a clear signal that it’s for sale.
https://www.investi.com.au/api/announcements/rxl/95645530-d44.pdf