Vox Royalty (TSX-V:VOX) Corp said it has executed binding agreements with Titan Minerals Limited to acquire four Peruvian gold, silver, and copper royalties for a total cash consideration of US$1 million.
As part of the transaction, Titan will pay Vox Royalty (TSX-V:VOX) US$1 million in cash under the terms of a deal between Vox subsidiary SilverStream and Titan’s Mantle Mining Peru. The amount payable by Titan was previously recorded as a non-current accounts receivable balance.
The acquisition gives Vox exposure to four exploration royalties in Peru, which hold potential for the discovery of large-scale precious and base-metal deposits. Historical fieldwork confirmed geological alteration systems indicative of such deposit styles, Vox said.
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The royalty portfolio comprises a 3% gross revenue royalty over the Cart, Colossus, Jaw and Phoebe projects, all of which are operated by Titan. The royalty tenure is located in geological 'elephant country' proximate to numerous world-class orebodies.
“We are pleased to close out this legacy receivable from Titan and to add four highly prospective Peruvian exploration royalties to our portfolio,” Vox Royalty (TSX-V:VOX) chief investment officer Spencer Cole said in a statement.
“Titan is targeting large-scale porphyry, skarn and volcanogenic massive sulphide style deposits, which if successful could create substantial returns for Vox shareholders over the long term,” he added.
The transaction is expected to close in the third quarter of 2021 once all customary conditions have been met. Vox said it will use current cash on hand to fund the payment of the aggregate purchase price for the royalty portfolio.
Vox Royalty is a precious metals royalty and streaming company with a portfolio of more than 50 royalties and streams, which span nine jurisdictions. Since the beginning of 2019, the company has announced over 20 separate transactions to acquire over 45 royalties.
Contact the author at stephen.gunnion@proactiveinvestors.com