Rox Resources plans to create a new subsidiary called Helios Gold to oversee operations at its Mt Fisher gold project in Western Australia. Rox intends to list Helios publicly on the ASX via an initial public offering (IPO).
Helios will issue fully paid ordinary shares to Rox, with existing Rox shareholders given priority to subscribe to the Helios IPO.
The Mt Fisher gold project contains a mineral resource of 973,000t at 2.75g/t of gold for 86,00oz of gold.
Recently, Rox has placed more focus on its nickel and copper projects, especially given the recovering nickel price and last year’s copper resurgence; these include its flagship Fisher East nickel and Collurabbie nickel-gold projects in WA and the Bonya copper project in the Northern Territory.
Ian Mulholland, Rox managing director, said the IPO would be the most effective way for shareholders to realise the full potential of the Mt Fisher gold project.
“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,” said Mulholland.
“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.”