Vox Royalty Corp (CVE:VOX) confirmed it has closed its previously announced acquisition of a portfolio of royalties from Breakwater Resources Ltd and some of its affiliates for a total of C$1,125,001 in cash and shares.
As reported last November, the original deal comprised of eight precious and base metals royalties, but three were not included at closing, as is typical of such a transaction, due to the exercise of a right of first refusal (ROFR) or other conditions not being satisfied.
Not included in the completed deal are the Eau Jaune 2% net smelter return (NSR) in Quebec and BMC Minerals' 0.45% NSR at the Toe-On exploration asset in Yukon, noted Vox.
READ: Vox Royalty calls meeting of holders to seek approval to amend terms of its common share purchase warrants expiring May 14, 2022
As revealed last year, the Breakwater royalty portfolio was created from previous sales between 1988 and 2015 by Breakwater, Nyrstar N.V. and their affiliates.
Among the royalties acquired is a 0.66% NSR royalty on Agnico's West Malartic (Chibex South) exploration project in Quebec, which sits around 10 kilometres (km) north-west of Canada's largest operating open-pit gold mine Canadian Malartic.
The Chibex South property covers two past-producing mines - the West Malartic mine and the Pan Canadian #2 mine. Historical output from 1942 to 1946 at West Malartic produced 35,582 ounces of gold and 1,178 ounces of silver for an average grade of 3.94 grams per ton (g/t) gold.
Vox has also got its hands on a US$0.20 per ton royalty on Hecla Mining's Montanore development project in Montana, USA.
According to Hecla, the Montanore and Rock Creek assets combined, represent the third largest undeveloped copper (silver) deposits in the US.
A preliminary economic assessment (PEA) from 2011 for the project envisaged a potential 12,500 short ton-per-day operation over a 15-year life for total mine life mill feed of 58,873,000 tons at 1.9 ounces per stone (oz/st) silver and 0.7% copper.
"Vox is very excited to acquire this high quality accretive North American royalty portfolio with Tier 1 operating partners," Spencer Cole, the firm's executive vice-president of North America, previously told investors.
Vox used current cash on hand to fund the C$400,001 cash part of the deal for a total consideration of C$1,125,001 in cash and shares.
Shares in Toronto nudged down 0.94% to stand at C$3.15 each.
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Contact the author at giles@proactiveinvestors.com