Robex doubles size of private offering for flagship Kiniero gold project in Guinea

Besides reopening the former Kiniero open pit, Robex is drilling to expand resources nearby in Guinea. Credit: Robex Resources

A day after announcing a C$55 million “best efforts” equity financing, Robex Resources (TSXV: RBX) has now doubled the amount to C$110 million. The net proceeds will support the continued development of its Kiniero gold project in Guinea.

The upsized offering includes almost 50.7 million units, each of which is priced at C$2.17. Each unit includes one common share and one full share purchase warrant. Each warrant entitles the holder to acquire one common share of Robex at a price of C$2.55 each within the next two years.

An over-allotment of 15% has been granted to the agents, led by SCP Resource Finance. It is exercisable up to 30 days after closing.

The Kiniero gold project was acquired by Robex in 2022 as part of the business combination with Sycamore Mining. The 470-sq.-km. property includes both the Kiniero project and the adjacent Mansounia exploration licences.

The mine operated from 2022 to 2014, producing a total of 418,000 oz. gold for the previous owner.

Work to restart the conventional open pit mine began in 2022, and Robex published a feasibility study in June 2023. Existing mining infrastructure will be refurbished and expanded as needed, but minimal additional construction is needed.

Initial capital costs were estimated at C$160 million to produce 851,000 oz. over a 9.5-year life. The all-in sustaining cost per ounce is $980. The processing plant will use both gravity and carbon-in-leach recovery. An updated study is to be released in September 2024.

Robex has also commenced an extensive drilling program on the numerous deposits identified on the Mansounia leases. Drilling density at depth and along the known lateral extensions is a priority.