Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) revealed that it has struck a non-binding letter of intent with Electric Royalties Ltd (CVE:ELEC) (OTCMKTS:ELECF) for it to acquire a portfolio of two graphite royalties from Vox.
The rapidly growing Toronto-based royalty company with a portfolio already spanning several continents, said the graphite portfolio consists of a 2.5% gross concentrate sales royalty on graphite production at the Graphmada Graphite Mining Complex in Madagascar; and a 0.75% gross revenue royalty on the Yalbra graphite exploration project in Western Australia. "The total consideration for the transaction is C$2,850,000 in shares of Electric Royalties and a C$50,000 cash non-refundable exclusivity payment," said the company.
In a statement, Vox CEO Kyle Floyd said: "We are excited to partner with Electric Royalties through this mutually beneficial transaction which allows Vox to unlock value for our shareholders from two non-core graphite royalties and rebalance our portfolio towards accretive precious metal royalty opportunities.”
“This portfolio of graphite royalties is a natural fit for Electric Royalties and this transaction is an opportunity for Vox to unlock the value of these royalties. It has been a pleasure working with Brendan Yurik and the Electric Royalties team on this transaction and we look forward to unlocking further value as a shareholder of Electric Royalties."
Vox noted that the completion of the transaction is conditional on completion of due diligence and customary conditions, including regulatory approval from the TSX Venture Exchange.
Toronto-based Vox holds a portfolio of over 45 royalties and streaming assets in Australia, Canada, Peru, Brazil, Mexico, the US, Madagascar and Nigeria. It has 35 operating partners.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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