Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) announced Friday that it has priced an overnight marketed public offering to raise about C$15 million.
Under the scheme, Vox is offering 5 million units at C$3 each, with an over-allotment option.
The company said it intends to use the net proceeds to support the continued growth of its portfolio of assets and for general corporate purposes.
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Specifically, Vox said it will earmark part of the money to fund the acquisition of royalties that are the subject of 10 conditional, exclusive letters of intent (LOIs) between Vox and royalty vendors.
Each unit consists of one ordinary share and one half of one ordinary share purchase warrant. Each warrant is exercisable to acquire one share for 36 months following the closing date at C$4.50 each, subject to adjustment in certain events.
Vox has entered into an underwriting agreement with BMO Capital Markets and Cantor Fitzgerald Canada Corporation as lead underwriters and joint bookrunners. The offering is expected to close on or about March 25.
In addition, Vox said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the units offered on the same terms and conditions. The over-allotment option may be exercised in whole or in part to purchase shares, warrants, or units as determined by the underwriters.
10 potential royalty acquisitions
Meanwhile, Vox said it continues to be one of the fastest-growing royalty and streaming acquisition companies in the industry, having announced 19 separate royalty transactions since January 2019.
Vox also provided a brief update around the 10 potential royalty acquisitions that are currently the subject of advanced negotiations that have the potential to be announced in the first half of 2021.
The company said these potential transactions offer it the opportunity to acquire between 20 and 30 additional royalties and expand its global portfolio to 72 royalties and streaming assets (subject to various conditions and the completion of various transactions, and assuming a midpoint of 25 royalties are acquired).
The potential transactions have been organically initiated through Vox’s proprietary intellectual property and deal sourcing networks. The royalties underlying the LOIs span various stable mining jurisdictions, including Australia, Canada, the US, and Chile, and the LOIs cover a range of precious metal and base metal mining assets located across stable geopolitical jurisdictions.
Vox said that assuming completion of the transactions under LOI and a midpoint of 25 royalties acquired, the company’s portfolio will consist of seven producing assets (an increase of 75% compared to its four producing or construction-stage assets in 2020).
In addition, six of the royalty assets subject to LOIs are currently in the development stage and the remaining 16 royalty assets are in the exploration stage. Assuming that 25 of the royalties under LOI are purchased, Vox said it projects that the underlying royalties are expected to generate between C$3 million and C$7 million of incremental revenue in 2023.
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