Vox Royalty Corp (TSXV:VOX) (OTCMKTS:VOXCF) said it has entered a binding agreement to acquire a A$10 per ounce gold royalty on part of the Bullabulling gold project in Western Australia for a total consideration of up to A$2.2 million.
The precious metals-focused royalty group said it will pay A$1.2 million cash upfront under the deal, with the first milestone payment contingent upon Bullabulling’s owner, Norton Gold Fields Pty Ltd, receiving approval of a mining proposal from the West Australian Department of Mines, Industry Regulation and Safety.
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Upon the milestone being achieved, Vox said it will pay A$500,000 in cash or shares at its discretion.
The company said the acquisition provides it with exposure to one of Australia’s largest undeveloped gold projects at the feasibility stage, adding that Bullabulling hosts a total resource estimate of 91.65 million tonnes at 1.04 grams per tonne of gold for 3.08 million ounces.
Vox also said Norton was a “strong operating partner” as one of Australia’s largest domestic gold producers and that the uncapped royalty provides exposure to resource expansion potential at the royalty-linked Phoenix, Hobbit, and Titan deposits, over and above the existing 775,000 royalty gold ounces at the Bonecrusher and Dicksons deposits.
"The addition of Bullabulling grows the number of gold royalties held by Vox in Western Australia to 19 (with 34 total in Australia), further strengthening the portfolio of royalties, which includes multiple producing, development and exploration stage assets,” Riaan Esterhuizen, Vox’s executive vice president of Australia said in a statement.
“Bullabulling adds exposure to another large gold resource with near-term development potential and is ideally located in Western Australia's premier Kalgoorlie / Coolgardie gold mining district. We look forward to seeing our operating partner Norton bring this project into production," the VP added.
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