Vox Royalty lines up accretive royalty deal in Nevada
Vox Royalty (CVE:VOX) has entered into a binding agreement to acquire an effective aggregate 0.633% net smelter returns royalty on part of Gold Standard Ventures Corp's (CVE.GSV) Railroad-Pinion Gold Project.
The Railroad-Pinion Gold Project is located on the prolific Carlin Trend in Elko County, Nevada. The Carlin Trend has historically produced >80Moz of gold historically. Vox is acquiring the royalty from a legacy family of ranchers for a total cash consideration of US$1.98mln.
Vox is expected to begin realising revenue immediately after the close of the transaction, due June 30, as the royalty has associated advance minimum royalty payments of over C$120,000 per annum.
This advanced payment will continue until production commences at the South Railroad portion of the Railroad-Pinion Gold Project, at which point we expect the potential cash flow from the royalty to increase.
Gold Standard Ventures has already received a term sheet for a US$200mln financing package from an internationally recognised mining investment management firm, to cover the construction of a heap leach operation at the South Railroad portion of the Project. Having this package in place reduces the development risk associated with the royalty Vox is planning to acquire.
Quick facts: Vox Royalty
Price: 3.24 CAD
Market Cap: $128.68 m
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