Rox Resources to IPO Mt Fisher Gold Project

THE BOURSE WHISPERER: Rox Resources (ASX: RXL) announced plans to spin out the company’s Mt Fisher gold project in Western Australia into a newly established, 100 per cent-owned subsidiary, Helios Gold Limited.

Rox Resources intends listing this company on the Australian Stock Exchange via an Initial Public Offering.

The 219 square kilometre Mt Fisher gold project is located 270km north of Leonora, adjacent to the company’s Fisher East nickel project.

Mt Fisher contains a mineral resource of 973,000 tonnes at 2.75 grams per tonne gold for 86,000 ounces of gold.

Under the terms of the transaction, Helios will issue fully paid ordinary shares to Rox as consideration for the Mt Fisher gold assets.

Existing Rox shareholders will be given a priority offer to subscribe for shares in the Helios IPO.

It is expected that Rox will initially hold an interest of approximately 33 per cent in Helios, which will boast a separate management team and board.

The directors of Rox declared their confidence that vending Mt Fisher into Helios and floating the company will be of benefit to the project, bringing an increased focus and dedicated funding.

Rox said its shareholders will retain exposure to the upside potential of Mt Fisher, while allowing the company to focus its advancing nickel and base metals interests.

“We originally acquired the Mt Fisher tenements in 2011 for the outstanding gold potential the project area offered, but the discovery of nickel at Fisher East since that time has made it difficult to give the gold assets the proper focus they required,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“For some time now, the market has not attributed any value to Mt Fisher, and we believe this is the most efficient and effective way for our shareholders to realise the full potential and unlock the inherent value.”