(MENAFN - ProactiveInvestors - Australia) Rox Resources (ASX: RXL) has raised A1.4 million in its recent share purchase plan, exceeding the company's expectations and indicating strong investor support.
The company offered up to 119.5 million shares at 0.015 each to eligible shareholders, who could subscribe for up to 15,000 worth of shares, to raise a total of 1.8 million.
Ian Mulholland, managing director, commented: "It is a very pleasing result to receive such strong support from our shareholders in this difficult market.
"We look forward to rewarding their support by continuing active exploration on our high quality projects."
The funds raised will be used to progress Rox's exploration programs in Western Australia and the Northern Territory.
In Western Australia, Rox has developed a nickel sulphide drill target at the Fisher East prospect which forms part of the Mt Fisher project.
A strong electromagnetic anomaly at the project is shown to be coincident with a nickel geochemical anomaly defined in rotary air blast drilling.
The initial geochemical anomaly of 12 metres at 0.12% nickel lies over the strong VTEM anomaly at Fisher East. Rox now intends to drill test the anomaly as soon as possible.
The Mt Fisher project hosts a JORC resource of 973,000 tonnes at 2.75g/t for 86,080 gold ounces and is strategically located within 150 kilometres of four treatment plants.
Rox recently delivered drilling results that indicate the Greenstone belt could host over a million ounces of gold.
The Mt Fisher Mine Area is a large mineralised system with a similar geological sequence to Navigator Resources' (ASX: NAV) 3.6 million ounce Bronzewing Gold Project.
In the Northern Territory, Rox recently farmed-in to the Bonya Copper Project 350 kilometres east of Alice Springs.
The 279 square kilometre project is located adjacent to Kentor Gold's (ASX: KGL) 11.9 million tonne at 1.3% copper Jervois deposit, with mineralisation at Bonya shown to be similar to Jervois.
Rox recently received laboratory assays from the Bonya Project confirming high grade rock chip mineralisation of up to 30.7% copper, 34.1 grams per tonne (g/t) silver and 0.52g/t gold.
The geological setting is similar to other areas such as Mount Hardy in the Northern Territory, and of a similar deposit type to those found in the Doolgunna district in Western Australia, which hosts Sandfire Resources' (ASX: SFR) DeGrussa deposit.
Importantly, there are walk up drill targets at the old Bonya Mine prospect, with Rox planning to progress the project with geochemical and geophysical programs prior to drilling in the first half of 2013.
Rox can earn a 51% interest in the copper, lead, zinc, silver, gold, bismuth and platinum group elements mineral rights by spending 500,000 at Bonya within the first two years.
The company can then elect to earn a further 19%, for 70% in total, by spending a further 1 million over a further two years.
Once Rox has earned either a 51% or 70% interest it can form a joint venture with Arafura Resources (ASX: ARU) to further explore and develop the area.