Vox Royalty Corp (CVE:VOX) announced Wednesday that it has entered into a binding agreement with Yilgarn Iron Pty Ltd (a subsidiary of Mineral Resources Limited) under which Vox will extinguish the outstanding balance of the Koolyanobbing royalty pre-payment through a A$1,782,032 cash payment.
In a statement, Vox said the Koolyanobbing royalty is an uncapped royalty of 2% on the average/tonne Free on Board (FOB) sales value of iron ore extracted from the Deception Deposit on mining lease M77/1258.
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Prior to Vox acquiring the Koolyanobbing royalty from Vonex Limited in 2020, a historical pre-payment of the royalty in the sum of A$3 million was made by Cliffs Asia Pacific Iron Ore Pty Ltd to Vonex.
Vox said no royalty cashflows are payable to it until this pre-payment amount has been exhausted. The outstanding balance as of December 31, 2020 was A$1,782,032.
Following payment of the settlement amount, effective January 1, 2021, Vox will earn royalty revenues from the Koolyanobbing royalty.
Vox said royalty revenue forecasted for 2021 ranges between A$600,000 to A$800,000.
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