Business
Vox Royalty Acquires Producing Wonmunna Royalty In Western Australia And Provides 2022 Revenue Guidance
TORONTO, May 26, 2022 /CNW/ - Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) ("Vox" or the "Company"), a returns focused precious metals royalty company, is pleas
About this update from Vox Royalty Corp
[{"type":"text","content":" TORONTO, May 26, 2022 /CNW/ - Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) (\"Vox\" or the \"Company\"), a returns focused precious metals royalty company, is pleased to announce that it has acquired a producing royalty over the Wonmunna iron ore mine in Western Australia (\"Wonmunna\") operated by major ASX-listed producer Mineral Resources Limited (ASX: MRL) (\"MinRes\"). The royalty was acquired from an arm's length, private company (the \"Vendor\") for the following consideration (the \"Transaction\"): US$4,750,000 in cash, US$12,150,000 in Vox common shares, being 4,350,000 common shares at an issue price of CAD$3.53 per common share and a USD/CAD exchange rate of 1.2618 (the \"Vox Shares\"), and 3,600,000 common share purchase warrants with an exercise price of CAD$4.50 and an expiry date of March 25, 2024 (the \"Vox Warrants\"). The cash portion of the purchase price was fully funded by Vox's cash on hand. The definitive agreement was executed by Vox and the Vendor on May 26, 2022. The royalty is a 1.25% - 1.50% sliding scale Gross Revenue Royalty (\"GRR\") over the Wonmunna mine, with 1.25% GRR payable when benchmark 62% iron ore price is below A$100/tonne and 1.50% GRR payable when the iron ore price is above A$100/tonne (the \"Royalty\"), which covers the full extent of Wonmunna. Wonmunna commenced production in April 2021 and is currently producing at a rate of ~5Mtpa of iron ore, with all approvals received to expand production up to 10Mtpa. Notwithstanding the closing date of the Transaction, all royalty payments due and payable to the holder of the Royalty will be for the benefit of Vox as of April 1, 2022. Kyle Floyd, Chief Executive Officer stated: \"The Wonmunna royalty acquisition further expands the revenue and growth profile of Vox and is accretive on all key metrics. The opportunity to add significant, immediate, incremental revenue through a non-brokered accretive transaction with a private seller generates significant value for Vox shareholders for years to come. We are also excited to increase our exposure to an A$11 billion market cap, best-in-class operator, who we know well as the operator of our producing Koolyanobbing royalty asset. We are also pleased to share revenue guidance of C$10M – C$12M for 2022, more than double Vox's 2021 realized revenues, which reflects the ongoing embedded gro...