Rox Resources (ASX:RXL) reports it has accepted the all-cash takeover offer for Cannon Resources (ASX:CNR) and has received $3.8 million for its more than 8.553 million Cannon shares.
On 10 November 2022, Rox reported the takeover offer for Cannon Resources at $0.45 per cannon share and its intention to accept into the takeover.
funds from the Cannon takeover will be used to progress resource drilling, near mine exploration and feasibility studies at the Youanmi Gold Project
Rox says the funds from the Cannon takeover, together with the recently completed tranche one placement ($3.3 million) and Share Purchase Plan ($4.4 million), will be used to progress resource drilling, near mine exploration and feasibility studies at the company’s flagship Youanmi Gold Project.
As detailed in the announcement dated on 9 November 2022, the issue of shares to Hawke’s Point to raise an additional $1.2 million is subject to the company obtaining shareholder approval at a general meeting, which is now expected to be held in or around early February 2023.
The dispatch of the notice of meeting is expected to occur on or around early January 2023.
Cannon Resources is a Western Australia focused mineral resources exploration company, established to implement the demerger undertaken by Rox Resources for the purpose of maximising the value of the Fisher East Nickel Project and the Collurabbie Nickel Project.
On 31 October, Cannon Resources announced that it had entered into a bid implementation agreement (BIA) with privately held Kedalion Nickel, a wholly owned subsidiary of critical minerals focused private equity fund, Kinterra Battery Metals Mining Fund, LP.
Kinterra will acquire all the ordinary shares in Cannon including those issued upon exercise of options via a unanimously recommended conditional off-market takeover offer of $0.45 per share.
Rox, which has a 10% interest in Cannon, is an Australian listed company with advanced gold assets in Western Australia, including the Youanmi Gold Project and the Mt Fisher Gold project.
Write to Adam Orlando at Mining.com.au
Images: Rox Resources Ltd
