investor rally behid discovery

Investors rally behind discovery

February 21, 2013, 9:51 am Jarrod Lucas Kalgoorlie Miner

Cashed-up Rox Resources says market momentum is with the junior explorer as investors rally behind its speculative nickel discovery in the Northern Goldfields.

At Tuesday’s close, Rox shares were 11 cents after surging 61.01 per cent in four trading days, although they lost ground yesterday to finish at 9.9 cents.

The fickle nature of markets means smaller companies are fighting a constant battle to stay in the spotlight.

But with more than $6 million in the bank after completing a capital raising with sophisticated investors last week, Rox managing director Ian Mulholland says there will be a steady news flow to the market over the coming months.

“The idea of raising the cash was to keep things rolling,” Mr Mulholland said.

“We knew if we got some momentum going, we needed to keep drilling without stopping to raise more capital and start again.

“If we delayed the capital raising then we would have been waiting another couple of months.

“I think it’s better to have the cash in hand and the confidence that you can move forward.

“That positive news flow is very important – you have to keep the market excited.”

Author Jarrod Lucas

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