Rox Resources Raises A$200 Million to Advance the Youanmi Gold Project
- Noel Ong
- 5 days ago
- 6 min read
Announcement
Institutional Placement to fund project development 14 November 2025 (click here to view the announcement)
Rox Resources Limited (ASX: RXL) has secured a significant equity raising to advance the development of the high-grade Youanmi Gold Project, located near Mt Magnet in Western Australia, approximately 480km northeast of Perth (Figure 1). The placement represents one of the largest capital injections into a WA gold development project in recent years, positioning the Company to move into construction and long-lead procurement.
Figure 1: Youanmi Gold Project (source: RXL)
The Business of the Company: Focus – Projects
Rox Resources is a WA-focused exploration and development company, fully owning the historic Youanmi Gold Project. The Project currently hosts a 12.1Mt resource at 5.6 g/t Au for 2.2Moz (Figure 2), underpinning the strategy to transition from explorer to producer. Rox is executing a clearly defined development plan supported by a recently delivered Definitive Feasibility Study.
Figure 2: Youanmi DFS (source: RXL)
Highlights – A$200 Million Institutional Placement Supports Development
A breakdown of the funding initiative:
A$200M raised (before costs) via a two-tranche placement backed by high-quality domestic and international investors.
L1 Capital cornerstone commitment: A$60M, taking ~12.9% post-placement holding.
Major shareholder participation:
Hawke’s Point – A$18M (Tranche 2)
QGold – A$25M
Proforma cash position post-raise: A$243.7M (before costs).
Share Purchase Plan (SPP) to raise a further ~A$10M at the Placement price of A$0.35 per share.
Proceeds will fully fund the equity component of the Youanmi Gold Project development, including:
EPC processing plant, camp, wastewater treatment, access roads, and dewatering infrastructure
Underground development at United North & Pollard; rehabilitation of Youanmi Main decline
Resource definition and extensional drilling from surface and underground
Regional exploration commencing early 2026
Working capital and financing costs
Leadership Commentary
Rox Resources Managing Director & Chief Executive Officer, Phill Wilding, commented:
“The Youanmi Gold Project is a high-grade, high-margin project, as showcased in the recently announced Definitive Feasibility Study.
“The Placement capitalises on this momentum, with the level of support from existing and new shareholders being a testament to the compelling and robust business case for the Youanmi Gold Project, and the team that will deliver it.
“Securing these funds significantly de-risks the delivery timeline for the construction of Youanmi and ensures we can order long-lead items.
“We have laid the foundations for our pathway to production, and are in a strong position to leverage the outstanding fundamentals of Youanmi and record gold prices to deliver sustained value for all shareholders.”
About The Youanmi Gold Project
The Youanmi Gold Project is one of Western Australia’s high-grade underground gold systems with a long production history and strong growth potential. Rox controls the entire project, allowing it to execute a streamlined development strategy. Key characteristics include: 100% ownership of a historically significant goldfield, 2.2Moz resource at high grades suitable for underground mining, DFS-supported pathway toward production, and strong leverage to the current gold price environment
Figure 3: Pathway to Production (source: RXL)
Near-term Milestones to Watch
Completion of debt financing package following strong equity support
Commencement of long-lead procurement for processing infrastructure
Underground resource definition drilling – Q2 2026
Surface and underground extensional drilling – Q3 2026
Regional exploration program beginning early 2026
Progress toward first gold pour – mid-CY2027
How Samso Understands the Investment Memo for the Company
From an investment lens, Rox has now positioned the Youanmi Gold Project with the financial certainty required to transition into development. The scale of support—from institutional and major shareholders—reinforces the technical and economic confidence that underpins the DFS. With equity secured, the remaining steps toward debt completion and construction appear to be well-defined. The Project now progresses into a phase where execution capability becomes the value driver.
Samso Concluding Comments
This is simply a vote of confidence to get the Youanmi Gold project happening. There are obvious technical issues with the project, and that is why it has laid unloved for all these years. The consolidation of ownership into Rox Resources was a good sign to move the project forward. I have always known that this project was riddled with issues. Firstly, it has a refractory gold chemistry, and this will and is still an issue, irrespective of the current buoyant gold price.
The issue with gold projects now is that investors need to be even more diligent in their DYOR process. Many gold projects that are riddled with issues will be where the "money pit" disease will be rampant. I am not saying that Youanmi is issue-bound, but I am just cautious of the project cost of renovating, as that is always brighter than it actually is in reality.
Figure 4: Rox share price as of 28th November 2025 (source: CommSec)
The recent capital raise has been good to Rox (Figure 4); however, I think the litmus test will come in the next 9 months as the company moves from receiving cash and executing the process of mining. With a current market capitalisation of AUD $367M, I would think that this is already in the "risky" situation of the gold price deciding to retreat to a more sustainable level.
My recommendation is to do some serious DYOR, and you may find that you want to take your risk somewhere else, or not.
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