Robex Resources Ltd (ASX: RXR) shares have reached a new record high after the company announced that mining has commenced at its Kiniero Project in West Africa, with gold production expected to commence soon.
Robex said mine development at Kiniero, in Guinea, was "tracking according to plan", and mining of ore had started on "day and night shift", with ore being stockpiled while the final elements of the processing plant were finalised.
The company expects to pour its first gold at the project in the fourth quarter of calendar year 2025, and its previous announcements to the ASX have said the company estimates the mine will produce an average of 139,000 ounces per annum over nine years.
Robex also operates the Nampala Gold Mine in Mali, which is forecast to produce 46,000 to 47,000 ounces of gold this calendar year.
Robex is also in the midst of merger talks with fellow West Africa-focused gold producer Predictive Discovery Ltd (ASX: PDI), which would create a company worth more than $2 billion.
Robex Managing Director Matthew Wilcox said on Thursday the company was approaching the "tail end" of construction at Kiniero.
It is pleasing to see the continued efforts and dedication of our teams to complete this project safely while meeting our time and budget considerations. Mining is now underway, with delivery of ore to the run of mine pad and drilling and blasting set to commence shortly. Major components of the process plant have taken shape and are nearing the commissioning phase, which is scheduled to commence next month.
Robex is also continuing to drill at the project for grade control purposes.
The company said concrete works for the processing plant and the power station at Kiniero were complete, and "the process plant will quickly transform as construction is accelerated''.
The next steps for the company included completing the processing mill installation and continuing with earthworks for the tailings storage facility.
Image source: Getty Images
Merger in the wings
Robex recently told its shareholders it had agreed to a merger agreement with Predictive Discovery, with further details on that deal to be sent to shareholders soon.
Under the plan, Robex shareholders will receive 8.667 Predictive Discovery shares for each Robex share they own.
Based on the Predictive Discovery share price of 62.5 cents on Thursday, this would value Robex shares at $5.41.
Robex shares hit a new record high of $5.32 in early trade on Thursday before settling back slightly to be changing hands for $5.20, up 4.6%.
Shareholders have made good gains on the stock over the past 12 months, during which it has traded as low as $3.20 per share.
