Rox Resources to disclose new capital raising details
Cash-strapped nickel explorer Rox Resources will reveal the details of a new capital raising on Monday after placing its shares in a trading halt.
Perth-based Rox — headed by veteran geologist Ian Mulholland — has made four nickel sulphide discoveries in the past three years at the explorer’s Fisher East project near Wiluna.
But the company’s exploration success comes at a cost, requiring regular capital raisings with just $657,000 left in the kitty at September 30.
Rox successfully raised $3.9 million in June via a share purchase plan, including $700,000 from underwriters Patersons Securites.
But $2.4 million went to Kalgoorlie prospector Gerard Brown as part of an option deal to acquire 100 per cent of Fisher East.
Patersons Securities head of research Rob Brierley, in a research note, said Rox has been conducting exploration and project development activities at a “solid pace”.
“It seems to steadfastly pursue the unlocking of value from its projects and we admire this approach,” he said.
“However, this approach requires regular capital raisings as exploration is rarely a provider of short-term gratification.”
This year’s share purchase plan was the sixth time Rox had rattled the tin since November 2012, raising a combined $20.45 million amid some of the most gloomy market conditions in memory. Rox shares have taken a hit every time, falling from a high of 7.9 cents in March 2013 to its current price of 2.1 cents.