Vox Royalty Corp. (VOX:TSX.V) announced in a news release it entered an agreement to acquire the rights of up to eight royalties from Breakwater Resources and some of its affiliates for up to CA$980,000, comprised of up to CA$455,000 in cash and CA$525,000 worth of Vox shares. The deal is expected to close 70 days after the signing.
"Vox is very excited to acquire this high quality North American royalty portfolio with Tier 1 operating partners such as Agnico Eagle, Alamos Gold and Hecla. These royalty assets are some of the most interesting and prospective that Vox has acquired to date, including the third largest copper/silver project in the USA, the shovel-ready Lynn Lake gold project in Manitoba and the West Malartic royalty that is 10km northwest along the Larder-Cadillac Break from the largest open pit gold mine in Canada," Vox Royalty Executive Vice President of North America Spencer Cole said in the release.
"When this transaction closes, we will have successfully grown our royalty portfolio by over 40 assets since January 2019. Based on the technical studies and five resource estimates on royalty claims, we see strong potential for meaningful cash flow generation from this portfolio," Cole added.
The portfolio consists of precious and base metals royalties on this mix of exploration and development-stage assets:
Montanore in Montana: The royalty is for US$0.20 per ton of production from the third largest copper-silver project in the U.S. A resource estimate and a preliminary economic assessment were done in 2018 and 2011, respectively. The operator is USA Development.
Lynn Lake-MacLellan in Manitoba: The royalty is for 2% of gross proceeds from this feasibility-stage gold project in a past-producing gold camp. Alamos Gold is the operator.
Lynn Lake (nickel) in Manitoba: The royalty is for 2% of gross proceeds. Corazon Mining is the operator.
Kenbridge (nickel-copper) in Ontario: This is a 1% net smelter returns (NSR) royalty with a CA$1.5 million buyback option. A resource estimate and PEA on this nickel deposit were updated in 2010. Tartisan Nickel is the operator.
Estrades in Quebec (Au-Zn-Cu-Ag-Pb): The royalty is for 2–3% of NSR on this past-producing mine. The operator Galway Metals updated the resource estimate in 2018.
West Malartic (Chibex South) in Quebec (gold): The royalty is for 0.66% of NSR on this exploration-stage project that includes two past-producing mines. Agnico Eagle is the operator.
Eau-Jaune in Quebec (gold): This is a 2% NSR royalty with a 1% buyback option for CA$1 million. The operator is 9199-0382 Québec Inc.
Kudz Ze Kayah (Toe-On) (gold) in the Yukon: This is a 0.45% NSR royalty. BMC Minerals is the operator.
The company stated that these new royalties diversify Vox's portfolio and strengthen its low geopolitical risk as more than 75% of the company's assets are in Canada, the U.S. and Australia.
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