Rox Resources Secures Staggering $350 Million in Debt Facilities for Youanmi Gold Project
Perth-based Rox Resources (ASX: RXL) has taken a monumental leap forward in its quest to bring the Youanmi gold project in Western Australia online, securing up to $350 million in debt facilities. This substantial funding package, arranged through a syndicate of globally recognised financial institutions, is set to fully finance the development and construction of this significant gold asset.
The company has inked a binding credit-approved commitment letter and term sheet with a formidable lineup of banks: Societe Generale, Sumitomo Mitsui Banking Corporation (SMBC), The Hongkong and Shanghai Banking Corporation (HSBC), and Westpac Banking Corporation. This agreement will provide Rox Resources with a $300 million senior secured project term loan facility, complemented by a $20 million cost overrun facility and a $30 million bank guarantee facility.
Phill Wilding, Rox’s Managing Director and CEO, expressed his enthusiasm for this pivotal development. He highlighted that the agreement with this tier-one syndicate of banks is the culmination of an exhaustive due diligence process. This rigorous evaluation involved independent consultants scrutinising every facet of the project, from its technical viability and environmental and social impact to legal frameworks, insurance provisions, and the robustness of its financial modelling.
“The commitment of debt funding from an impressive selection of Australian and international banks is yet another major milestone for Rox as we accelerate our pathway to production for the Youanmi gold project,” stated Mr Wilding. He further emphasised the significance of the banks’ confidence, noting that the debt funding process included a thorough due diligence by the banks’ independent technical expert. “This provides further validation of the robustness of Youanmi and our expectation that it will be a high-margin operation.”
Paving the Way for Production: Key Milestones Ahead
With the funding now secured, Rox Resources is poised to move into the next critical phases. The company will now collaborate closely with the participating banks to achieve financial close. This will pave the way for the commencement of debt drawdown, anticipated in the September quarter of the 2026 financial year.
“The project is now fully funded through to production, and we look forward to making a final investment decision (FID) later in this quarter, before commencing construction activities,” Mr Wilding elaborated. This strategic sequencing underscores the company’s commitment to a streamlined and efficient development pathway.
The Promising Youanmi Gold Project
The historic Youanmi gold project is strategically located near Mt Magnet, approximately 480 kilometres northeast of Perth, Western Australia. This project is distinguished by its high-grade and high-margin potential. It boasts a global mineral resource of 12.1 million tonnes, grading at an impressive 5.6 grams per tonne (g/t) of gold, equating to a substantial 2.2 million ounces of gold.
Recent progress at Youanmi has been significant. In late February, Rox Resources commenced an infill and resource growth drilling program targeting the initial United North levels. The primary objective of this program is to identify and delineate additional high-grade gold ounces, further enhancing the project’s economic potential.
Furthermore, the company has proactively secured long-lead items essential for plant construction. This foresight was facilitated by the engagement of MACA Interquip Mintrex, a preferred Engineering, Procurement, and Construction (EPC) contractor, ensuring that critical supply chains are in place well in advance of construction commencement.
Rox Resources’ share price remained steady at 51.5 cents on the day of this announcement, reflecting investor confidence in the company’s strategic advancements.
The information presented here is for informational purposes only and should not be construed as investment advice. Investors are strongly encouraged to conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions.
