Vox Royalty (TSX-V:VOX) Corp said it has executed a binding royalty sale and purchase agreement to acquire the rights to three Canadian gold royalties for a total consideration of up to C$1,800,000.
Under the agreement with an individual prospector residing in Canada and dated June 3, 2022, Vox will pay C$100,000 cash at closing and make additional cash payments or issue shares of Vox at specified dates in the future. The company will pay at its sole election, C$500,000 or issue up to a maximum of 184,399 common shares in September 2022, C$700,000 or issue up to a maximum of 258,159 common shares in January 2023 and C$500,000 or issue up to a maximum of 184,399 common shares in December 2023.
"We are very excited to add these rapidly advancing Canadian gold royalties to the Vox portfolio, which offer significant near-term exploration and development catalysts for Vox shareholders,” Spencer Cole, Vox chief investment officer, said in a statement.
“We are also pleased to support another private prospector with a mutually-beneficial transaction. Over the next 18 months, we expect a construction decision at Goldlund, a maiden resource statement at Beschefer and extensive discovery newsflow, he added.
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Closing of the transaction remains conditional upon final acceptance by the TSX Venture Exchange.
Vox said the royalties include a 1.0% Net Smelter Returns royalty over part of the Goldlund Project in Ontario operated by Treasury Metals Inc, an effective 0.6% NSR royalty over the Beschefer Project in Quebec operated by Goldseek Resources Inc. (CSE:GSK) under option from Wallbridge Mining Company Limited (TSX:WM), and all personal rights held to a 1.5% NSR royalty over the Gold River deposit in Ontario (Torogold), which is a satellite deposit to the Timmins West mine operated by Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS).
The agreement gives Vox exposure to the substantial Goldlund Project resource which was recently upgraded to 940,000 ounces Indicated and a further 703,500 ounces Inferred, which is a key part of Treasury's integrated Goliath Gold Complex Project.
The Beschefer Project, meanwhile, covers approximately 962 acres and is located in the Northern Abitibi Greenstone Belt, 14 km east of the past-producing polymetallic Selbaie Mine, 45 km northeast of the Casa Berardi Mine and 30 km from Wallbridge's Fenelon Gold property. Historically, the area has mainly been explored for volcanogenic massive sulfide deposits similar to the Matagami camp and the Selbaie Mine.
Vox noted that the Torogold Royalty was created pursuant to the Denton and Thorneloe Townships property deal between Homestake Canada Inc., Torogold Resources Inc. and Band-Ore Resources Limited in 1994. Both Homestake and Torogold Resources were each issued a 1.5% NSR royalty, subject to a partial buyback right for each royalty of 0.5% NSR for C$1 million that is currently unexercised.
Vox is a returns-focused precious metals royalty company with a portfolio of over 50 royalties and streams spanning eight jurisdictions.
Contact the author at jon.hopkins@proactiveinvestors.com