Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) is due past royalty payments it is owed by Bass Metals (ASX;BSM) over the latter's Graphmada project in Madagascar, following a positive arbitration decision, the company revealed on Wednesday.
Following the acquisition of the Graphmada royalty (2.5% gross sales royalty) by Vox's subsidiary SilverStream, Bass disputed the royalty calculation terms.
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But now the arbitrator has determined that Bass unreasonably withheld consent to the assignment of royalty rights to SilverStream, and it must pay past-due royalties owing from the operator. The arbitrator also ruled that Bass should pay additional legal costs and expenses.
"We are very pleased with the outcome of the arbitrators' decisions on the Graphmada royalty," said Kyle Floyd, chief executive of Vox.
"We are also excited to share Bass' most recent developments on the expansion work being done on the Graphmada project. The latest news provides further value for our shareholders through organic developments and advancements by the operators of the projects underlying our royalty interests."
In December this year, Bass updated on its progress with ongoing feasibility studies into the expansion and downstream development of the Graphmada project, which is in eastern Madagascar and sits adjacent to the main national highway and lies 110km from the country’s only deep-water port at Toamasina.
Highlights included that Bass had begun the search for strategic investment for its Stage 2 expansion and had achieved continued growth in mineral resources and exploration potential.
Recent testing also confirmed that Graphmada's commercially proven graphite concentrates can be screened and packaged at substantially higher throughput volumes than previously achieved.
The work also confirmed that concentrates produced from large scale mining and processing can be screened and packaged at rates up to 20,000 tonnes per year using a single unit. As part of its studies, Bass is planning for the installation of two units.
Rapidly growing Vox is a precious metals royalty and streaming company with a portfolio of over 45 assets spanning nine jurisdictions.
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