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High Growth, 'Unique New Entrant in Royalty Space' Adds Another Asset
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A Red Cloud Securities report discusses why the firm is "encouraged by Vox Royalty's pace and disciplined growth strategy."

In a June 30 research note, Red Cloud Securities analyst Derek Macpherson reported that Vox Royalty Corp. (VOX:TSX.V) agreed to acquire a 1% nonsmelter returns (NSR) royalty on certain Bulong gold project concessions in Western Australia for AU$750,000. The deal is expected to close by the end of September 2020.

Macpherson noted that this is the final of the four acquisition agreements the company, before going public, said it intended to enter into. Vox is acquiring the Bulong royalty from an auto parts maker, RPM Automotive Group. The total consideration to be paid by Vox consists of AU$400,000 in cash and AU$350,000 worth of shares, about 100,000.

"We are encouraged by Vox's pace and disciplined growth strategy," wrote Macpherson. "These acquisitions from nontraditional vendors highlight what makes Vox a unique new entrant in the royalty space."

Macpherson reviewed the Bulong NSR royalty and related transaction. He highlighted that the royalty is on an asset that is close to production. The next step is a feasibility study, which is expected from Black Cat Syndicate, the project's owner/operator, in Q3/20 on the Myhree deposit. Myhree has a total resource of 1,427,000 tons at 3.4 grams per ton gold, containing 155,000 ounces of gold, and resource expansion potential.

"The high-grade tenure of this open-pit deposit makes it amendable to toll treating, providing a relatively short path to production," added the analyst.

The royalty encompasses nine Bulong property tenements, including four mining leases, four prospecting leases and one exploration license, which span 82 square kilometers and are within driving distance of five mills.

Macpherson pointed out that this Toronto-based company closed a CA$13.75 million financing earlier this year and, thus, is well funded.

Due to the significant impact of acquisitions on small companies, Red Cloud has not yet determined a valuation, target price or rating for Vox, Macpherson indicated and added, "We expect the company's share price to perform in line with the quality of its acquisitions."


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Vox Royalty. Click here for important disclosures about sponsor fees.
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Disclosures from Red Cloud Securities, Vox Royalty Corp., Corporate Update, June 30, 2020

Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Company Specific Disclosure Details
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.

Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

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