Get the Latest Investment Ideas Delivered Straight to Your Inbox.

News Update

TICKERS: VOX

Firm Agrees to Buy South African Vanadium Royalty for US$2 Million
News Update

Share on Stocktwits

Source:

Vox Royalty Corp. has entered into a binding agreement to acquire a royalty over a portion of Bushveld Minerals Ltd.'s Brits Vanadium Project located in South Africa.

In a news release, precious metals mining royalty and streaming company Vox Royalty Corp. (VOX:TSX.V) announced that "it has entered into a binding agreement with Sable Metals and Minerals Pty. Ltd. pursuant to which Vox will acquire a royalty over a portion of Bushveld Minerals Limited's (BMN:LSE) Brits Vanadium Project for total consideration of US$2,000,000." Vox Royalty noted that Bushveld Minerals operates three mines and is one of the world's preeminent high-grade vanadium producers.

The company advised that under the terms of the transaction, Vox will pay US$500,000 in cash up front and US$250,000 in Vox shares. In addition, two further milestone payments are payable either by cash or Vox shares, at the company's choosing, after a prespecified amount of production tonnage milestones are realized. These payments were outlined as "one payment of US$1,000,000 once 210,000t have been mined over a continuous six-month period and a further US$250,000 once 1,500,000t have been mined over a rolling 3-year time horizon."

Vox Royalty stated that it believes that the transaction provides it with access to a world-class, high-grade, outcropping vanadium resource. The Brits Vanadium Project is situated next to the Bushveld's Vametco Mine and is located about 3.5km from the Vametco processing facility.

The company noted that a JORC-compliant Competent Person's Report published in January 2020 "showed an aggregate Inferred and Indicated Mineral Resource distributed across three seams of 66.8 Mt @ 1.58% V2O5 in-magnetite."

Vox asserted that this opportunity affords it unique exposure to Bushveld Minerals, a globally significant vanadium producer. The firm advised that Bushveld Minerals is one of only three operating primary vanadium producers and owns two of the world's four operational vanadium processing facilities.

The company's Executive Vice President Riaan Esterhuizen, who oversees the firm's Australia operations, commented, "Vox is excited to add this world-class, near-term production asset to its growing royalty portfolio. With the Brits resource being located immediately adjacent to the Vametco Mine, we expect that any future development will require minimal capital expenditure with Brits a ready ore source for Bushveld's significant production growth plans."

The firm explained that the Brits Project is part of the Bushveld Vanadium deposits located about 75km northwest of Johannesburg. The Brits forms a part of the regional Bushveld Vanadium Project and the Brits royalty covers the Uitvalgrond Portion 3 property.

The company noted that the royalty being acquired is a 1.75% gross sales royalty in respect of all products mined from Brits. Annual royalty payments are capped at ZAR9.62/t (~CA$0.82/t) milled, but are adjusted upward annually using the South African Consumer Price Index. The company "estimates that the current royalty cap escalated to 2020 terms is equivalent to approximately CA$1.03/t milled."

Vox Royalty stated it expects that the transaction will be completed in December 2020 and that the transaction is subject to ordinary conditions including the approval of both the TSX Venture Exchange and the Financial Surveillance Department of the South African Reserve Bank.

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Vox Royalty, a company mentioned in this article.





Recommendation for Streetwise Reports Readers

Be the First to Hear Direct from the Experts…Live and in Real Time!

StreetSmart Live! Was founded by the same team that that brought you Streetwise Reports.

Subscribe to the StreetSmart Live! YouTube channel and be the first to hear about interesting investment ideas live and in real time... straight from the experts. This type of intellectual capital is usually not made available to the general public, but StreetSmart Live! is your "In."

Subscribe Now (It's Free)

Want to read more about Special Situations and Critical Metals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe