Vox Royalty Corp (CVE:VOX) announced it had inked an agreement with Horizon Minerals Limited to purchase two advanced gold royalties in Western Australia for A$7 million.
The purchase includes a A$0.50 per ton royalty over the producing Janet Ivy Mine operated by Norton Gold Fields and a 2.5% net smelter return royalty over part of the Otto Bore Gold Project operated by Northern Star Resources Ltd (ASX:NST).
Janet Ivy is a production-stage asset with near-term exploration potential, while Otto Bore will provide strong additional near-term cash flow potential, the Canadian royalty firm told investors.
READ: Vox Royalty expects newsflow from royalty operating partners to increase as it updates on recent activity
Vox added that the acquisition strengthens its Australian royalty portfolio (which now consists of 33 interests) and broadens its relationships with Northern Star and Norton – two producing companies with multiple operating gold mines. The firm has a total of 47 royalty assets as of March 2021.
Around 80% of Vox's royalty and streaming assets are located in mining jurisdictions with low geopolitical risk like Australia, Canada and the US.
"We are very excited to be adding these two high quality Western Australian gold royalties to our portfolio,” Executive vice president Australia Riaan Esterhuizen said in a statement.
“With strong near-term catalysts expected to drive increased production at Janet Ivy and commencement of production at Otto Bore, we look forward to the progress of Northern Star and Norton over the coming months. The fact that both Northern Star and Norton are established and strongly capitalized Western Australian operators significantly enhances execution capabilities and bodes well for these projects being rapidly advanced."
Vox will pay an upfront cash payment of A$4 million and a milestone payment of A$3 million ontingent upon Vox receiving cumulative royalty payments in excess of A$750,000 from the Janet Ivy Mine, payable in cash or shares.
The deal is expected to close in the second quarter of 2021.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas