Vox noted that the transaction will expand its total Australian royalties to 31, making the company the second-largest publicly traded holder of royalty interests in Australia by royalty count, behind Franco Nevada Corporation (TSE:FNV) (NYSE:FNV) (FRA:3FO).
The company said the gold royalty portfolio will give it exposure to three advanced exploration gold royalties in Western Australia, each located within trucking distance of third-party mills.
“Three gold projects, each the flagship project of their respective operator, are actively being drilled out, and each with economic-width historical gold drilling intersections and located within trucking distance of a mill that has historically treated third party ore,” Vox Royalty Executive Vice President of North America Spencer Cole said in a statement.
READ: Vox Royalty has the cash and management experience to rapidly grow its portfolio of low-risk mining assets
He added: “We are very excited to acquire this portfolio and to share the upcoming operating partner news flow with Vox investors.”
The royalty portfolio comprises a 1% Net Smelter Return (NSR) royalty over the Bulgera Gold project operated by Norwest Mineral Ltd, a 1% NSR over the Comet Gold Project operated by Accelerate Resources Ltd, and a 1% NSR over the Mount Monger Gold Project operated by Accelerate and subject to a binding option agreement with Mt Monger Minerals Pty Ltd.
The company added that the transaction will provide it uncapped exposure to the Bulgera Gold deposit, which has an estimate resource of 93,880 gold ounces at 1.0 grams per tonne (g/t).
Vox said the transaction is expected to close in 1Q 2021 and will be funded by the company’s current cash on hand.
Toronto-based Vox Royalty holds a portfolio of over 45 royalties and streaming assets in Australia, Canada, Peru, Brazil, Mexico, the US, Madagascar and Nigeria. It has 35 operating partners.
Notably, it says three-quarters of its assets are located in low-risk Australia. Its assets are mainly precious metals, at over 50% of its net asset value (NAV) but the portfolio also contains base and battery metals.
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