Vox Royalty (TSX-V:VOX) Corp. said it is "thrilled" by news from investee company Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X). on July 30, 2021, that it had completed the first gold pour from its Segilola Gold Mine in Nigeria.
In a statement, Simon Cooper, executive vice president of Corporate Development commented: "We are thrilled to share this major milestone from Segilola with Vox shareholders. Based on production guidance from Thor, we expect that this royalty has the potential to generate revenue almost five times Vox's initial investment of C$900,000 within a span of three years.
"This achievement further strengthens Vox's previously announced revised 2021 revenue guidance increase of +100% to C$4,000,000-C$5,000,000. Vox congratulates the Thor team on this monumental milestone at Segilola. We look forward to sharing more updates with Vox investors on the Segilola asset as it moves toward commercial production."
READ: Vox Royalty doubles its 2021 royalty revenue guidance as the "true earnings power" of its portfolio begins to show
Thor Explorations expects that the process plant ramp-up at Segilola will continue over the next six weeks with commercial production targeted for September 2021. At commercial production, the company expects that the Segilola plant will run at a processing rate of 715,000 tonnes per annum, targeting c.85,000 ounces of gold per annum.
On September 10, 2020, Vox acquired a 1.5% net smelter return royalty in respect of all products mined from Segilola for C$900,000 in cash. Royalty payments are capped at US$3.5M (~C$4.4M at spot C$:U$ of 0.79). Based on production guidance from Thor issued on March 29, 2021, which forecast production of 46,000 ounces of gold in 2021 and 109,000 ounces of gold in 2022, Vox management estimates that total pre-tax royalty revenues of C$4.4M will be receivable within the first two full years of production.
Segilola is in the state of Osun in Nigeria, approximately 120 kilometres northeast of Lagos. The deposit hosts open-pit probable gold reserves1 of 517,800 ounces at 4.02 grams per ton (g/t) (at 0.30 g/t cut-off, resource estimate dated March 29, 2021). A 2019 Definitive Feasibility Study completed on February 4, 2019, outlines production estimates averaging 80,000 ounces of gold per annum over an initial 5-year mine life.
Vox is a growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning nine jurisdictions. The company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest-growing company in the royalty sector.
Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Contact the author at jon.hopkins@proactiveinvestors.com