Vox Royalty (TSX-V:VOX) Corp has said it is looking forward to seeing revenues next year from its royalty on the Otto Bore open-pit gold project now that operator Northern Star has started mining activities.
In an update of new developments across Vox’s royalty portfolio, the company said pre-stripping and open-pit mining preparation has commenced at Otto Bore, where Vox holds a 2.5% net smelter return royalty.
The Western Australia-located project was fast-tracked by Northern Star ahead of Vox's expectations and is now expected to generate attractive revenues for shareholders in 2023, the company told investors.
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"The Vox portfolio has continued to rapidly develop through drilling, engineering and pre-stripping over the past month, with a key highlight being commencement of mining activities at the Otto Bore gold project by Northern Star,” Vox chief investment officer Spencer Cole said in a statement.
Other noteworthy developments included an updated feasibility-level engineering technical report for the Pitombeiras vanadium project by Jangada, where Vox holds a 1% net smelter return royalty. The report outlines a 100.3% post-tax internal rate of return (IRR) and US$96.5 million post-tax net present value (NPV) at an 8% discount rate, with a nine-year life of mine and a post-tax payback period of 13 months.
“The robust economics of the Pitombeiras Vanadium technical report continue to support Vox management's confidence around this exciting vanadium project,” Cole said.
He added that Vox is “eagerly” anticipating the outcomes of Black Cat's toll milling tender at the Bulong project, while the potential to commence mining at the high grade royalty-linked Myhree deposit is expected in late 2022.
“Based on these updates, we expect multiple construction decisions in the second half of 2022 which will unlock incremental royalty revenue for 2023 and beyond,” Cole concluded.
Toronto-based Vox is a returns-focused precious metals royalty company, with a portfolio of over 50 royalties and streams spanning eight jurisdictions.
Contact Angela at angela@proactiveinvestors.com
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