Vox Royalty (TSX-V:VOX) Corp gave an update on developments at its royalty portfolio, including one asset that has now reached commercial production.
The Toronto-based royalty company owns over 50 royalties and streams across eight jurisdictions.
One of those assets, Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF)’s Segilola gold mine, recently started gold production. Vox holds a 1.5% net smelter return royalty at the Nigerian operation.
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In a statement, Vox told shareholders it estimates that total pre-tax royalty revenues of US$3.5M will be receivable within the first two full years of production, based on Thor’s production guidance, which forecasts production of 46,000 ounces of gold in 2021 and 109,000 ounces of gold in 2022.
Other highlights from the update include the anticipation of an upcoming feasibility study on the Pitombeiras vanadium-iron ore project, where Vox has a 1% net smelter return royalty. The study is expected in 4Q 2021.
Initial production and royalty revenue in 2022 looks increasingly likely given the current pace of development, Vox told shareholders regarding Pitombeiras.
Vox also stated that its partners are conducting successful drilling campaigns at exploration-stage projects, with high-grade results seen at the Ashburton gold project, Puzzle North gold deposit and the Pedra Branca platinum group elements (PGE) project.
"The past month has delivered a number of key developments at projects linked to Vox's royalty portfolio, including commercial production at Segilola, feasibility study progress at Pitombeiras, and further drilling success at Ashburton, Puzzle North and Pedra Branca,” Vox’s chief investment officer Spencer Cole said in a statement.
“These operator developments are representative of Vox's innovative event-driven acquisition model, designed to selectively acquire royalties immediately prior to major project developments that have a material impact on value."
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