Rox Resources to dis­close new cap­i­tal rais­ing de­tails

Kalgoorlie Miner - - BUSINESS - Jar­rod Lu­cas

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.

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