Rox Resources (ASX:RXL) has purchased gold put options to over approximately 50% of the forecast production from the Youanmi Gold Project for FY2028.
The put options cover 40,000 ounces. A leading Australian bank will provide cash flow protection to Rox during its first full year of production at Youanmi, helping to de-risk the project as it ramps up production.
The put options have a strike price of $5,700 per ounce and provide Rox with the right to sell the ounces at this price at monthly maturities.
The put option strike price is $500 per ounce above the November 2025 DFS gold price assumption of $5,200 per ounce, with an upfront premium of $9.7 million paid by the company.
Chief Financial Officer Greg Hoskins notes that “for a modest outlay of under A$10 million, the strategic purchase of gold put options provides valuable gold price protection and underwrites strong cash flow generation during the first full year of production at Youanmi”.
“Importantly, Rox maintains full exposure to rising gold prices, with its exposure capped at the upfront cost,” Hoskins says.
Rox Resources is focused on gold exploration and development of the Youanmi Gold Project in Western Australia.
Write to Amy Rotman at Mining.com.au
Images: Rox Resources
