Vox Royalty Corp (TSX-V:VOX) has executed a deal to acquire Gloucester's Cardinia development-stage gold royalty in Western Australia for A$450,000 (about US$300,000) in cash, the company announced.
The acquired royalty, previously produced on a bulk sampling basis, is a 1% gross value of sales royalty above 10,000 ounces of cumulative gold production. It applies to a mining lease operated by Kin Mining Ltd on Kin’s flagship Cardinia Gold Project.
The Cardinia royalty was created in 1993 pursuant to an option agreement between Sons of Gwalia Ltd and Centenary International Mining Ltd, the latter of which became CIM Resources Ltd and, eventually, Gloucester, the company said.
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"This overlooked 1993 vintage gold royalty is Vox's ideal low-cost acquisition - a fully-permitted and shovel-ready gold project, located in the prolific Leonora district of Western Australia within trucking distance of 4 existing mills with over 10 [megatons per annum] processing capacity,” said Riaan Esterhuizen, Vox’s EVP of Australia.
“This transaction was originated using Vox's proprietary royalty database of over 8,500 royalties, to identify an overlooked gold royalty inherited through a broader 2012 corporate acquisition. Regional consolidation within the Leonora region is underway with Genesis Minerals (ASX:GMD)' acquisition of Dacian Gold and merger talks ongoing between Genesis and St Barbara, all of which bodes well for Kin Mining's prospects at the Cardinia Gold Project."
Meanwhile, the company also completed the acquisition of First Quantum Minerals (TSX:FQM) Ltd.'s Canadian royalty portfolio, previously announced on November 10.
Vox is a returns-focused mining royalty company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. Established in 2014, it has built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to target the highest returns on royalty acquisitions in the mining royalty sector.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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