In early 2021, Hawke’s Point spent 2 months, including visits to Youanmi, carrying out due diligence on the project.Then, they invested $11m.
https://api.investi.com.au/api/announcements/rxl/4e0330f8-62c.pdf
Hawke’s Point follows a pattern of getting the right management before investing.
They did this at Capricorn Metals and Ora Banda Mining and now at Rox.
Now, due diligence is underway as Hawke's Point decides whether to double down on its investment.
This is a pivotal moment for Rox.
In effect, the team working to inform Hawke’s Point’s decision is led by Phillip Wilding CEO, Nathan Stoitis Director and Andrew Shaw-Stewart, Exploration Manager.
These mining industry giants are at small-cap Rox because of Hawke’s Point, and investors are privileged to have them.
If Hawke’s Point abandons the project, they will be gone as quickly as they came, but that is very small.
Rox has a positive PFS based on a significant high-grade maiden reserve, and the price of gold ensures Rox will become a mid-tier gold producer.
Hawke’s don’t just hand money over.
They want to know how quickly they can get a return on their cash.
That means the team needs to optimise the project to get it into production in record time.
Optimisation is Phil Wilding’s speciality.
He has an exemplary track record of doing exactly that. Wilding says:
Rox is targeting completion of the DFS in 2025 with strategies currently being explored to accelerate completion.
Hawke’s Point also wants an expert opinion on the DFS costs.
In particular, they want the cost of drilling to get enough gold into the mining plan to produce at least 100 Koz PA over a long LOM.
Hawke’s Point will then provide a line-by-line budget detailing how their cash is to be spent.
Hawke’s Point will also decide how funding will be provided.
It could be a share issue with options as they did in 2021.
That would further protect against a hostile take-over, more likely now that the Ramelius Resources’ Mt Magnet AISC has blown out.
If Rox can get into production quickly, Hawke’s Point may choose a gold royalty part-repayment as they recently did at Ora Banda.
That option capitalises on the longer-term prospects for the price of gold without diluting the share price.
A decision by Hawke’s Point to fund Rox to a DFS is a major de-risking milestone.
They very likely will, although there are no guarantees.
Rox Resources is a strong bet to be backed by Hawke's Point to become their next highly profitable Australian investment.
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