Rox Resources (ASX: RXL) has appointed MACA Interquip Mintrex as the preferred EPC contractor for its Youanmi processing plant, marking a significant step towards production readiness.
This announcement comes as the company confirms substantial equity funding is complete and debt financing is active, and follows the commencement of FEED (Front End Engineering Design) and early works in December 2025.
Procurement of long-lead items is currently underway, including the commitment for a fine grind mill.
Construction is slated to begin on an EPC basis after the Final Investment Decision (FID).
Funding Progress and FID Timeline
Equity funding for the Youanmi project, totalling $218 million ($200 million from a placement plus an $18 million Share Purchase Plan), is either complete or progressing.
Debt financing discussions are active, with necessary approvals lodged.
The company is targeting a Final Investment Decision (FID) for late Q1 2026.
Rox Resources has indicated a robust cash position of approximately $218 million (pre-costs) following its recent capital raises.
Project Development and Infrastructure
Significant progress has been made on project development and infrastructure.
Approximately 420 metres of underground development has been completed at United North, while main pit dewatering is progressing on schedule for completion in Q1 CY2026.
Phase 1 of the accommodation camp expansion is complete, providing 60 rooms online and a total of 111 rooms onsite, with plans for further expansion to approximately 350 rooms in H1 CY2026.
Long-lead infrastructure, including the power station and oxygen supply, is also advancing.
Resource Base and Exploration Outlook
The Youanmi project boasts a substantial resource base of 12.1 Mt at 5.6 g/t for 2.2 Moz gold.
Looking ahead, the first drilling program for Q1 CY2026 is planned.
Additional exploration programs are slated for Hope and Commonwealth-Connemarra, with EIS-funded drilling anticipated in these areas.
Risk Mitigation and Hedging
To mitigate potential risks during the ramp-up phase, Rox Resources purchased gold put options covering approximately 50% of its forecast FY2028 Youanmi production, amounting to 40,400 ounces.
These options have a strike price of A$5,700/oz and cost an upfront premium of A$9.7 million.
This hedging strategy aims to de-risk the initial production period and bolster ongoing financing discussions.
However, explicit risks for the project include execution challenges around EPC delivery, potential cost overruns, and delays in securing financing or reaching a Final Investment Decision.
