Business
Vox Royalty to Accelerate Koolyanobbing Royalty Cashflow
GEORGE TOWN, Cayman Islands, March 31, 2021 /CNW/ - Vox Royalty Corp. (TSXV: VOX) ("Vox" or the "Company"), a high growth precious metals focused royalty compan
About this update from Vox Royalty Corp
[{"type":"text","content":" GEORGE TOWN, Cayman Islands, March 31, 2021 /CNW/ - Vox Royalty Corp. (TSXV: VOX) (\"Vox\" or the \"Company\"), a high growth precious metals focused royalty company, is pleased to announce that it has entered into a binding agreement with Yilgarn Iron Pty Ltd (a subsidiary of Mineral Resources Limited) pursuant to which Vox will extinguish the outstanding balance of the Koolyanobbing royalty pre-payment through a cash payment. The Koolyanobbing royalty is an uncapped royalty of 2% on the average/tonne Free on Board (\"FOB\") sales value of iron ore extracted from the Deception Deposit on mining lease M77/1258 as shown in Figure 2 below. Prior to Vox acquiring the Koolyanobbing royalty from Vonex Limited (\"Vonex\") in 2020, a historical pre-payment of the royalty in the sum of A$3,000,000 was made by Cliffs Asia Pacific Iron Ore Pty Ltd to Vonex. As previously disclosed in Vox's filing statement dated May 12, 2020, no royalty cashflows are payable to Vox until this pre-payment amount has been exhausted. The outstanding balance as at December 31, 2020 was A$1,782,032. Vox has entered into a binding agreement with Yilgarn Iron Pty Ltd pursuant to which Vox will extinguish the outstanding balance of the Koolyanobbing pre-payment through a cash payment of A$1,782,032 within five business days from execution date of the agreement. Following payment of the settlement amount, effective January 1, 2021, Vox will earn royalty revenues from the Koolyanobbing royalty. Royalty revenues associated with the Koolyanobbing (Deception Pit) royalty over the past two years and forecast for 2021 are as follows: 2019 2020 2021 Forecast Royalty Revenue (A$) $724,198 $493,769 $600,000 – $800,000 The Deception Pit and the Altair Pit to the north are currently being mined at a rate of 1.1Mtpa – 1.3Mtpa. Historical royalty attributable annual production on the Vox royalty tenure (M77/1258, see Figure 2) has averaged 180,000t – 360,000t and Vox management expects this royalty attributable production rate to increase in coming years as mining transitions further north within M77/1258. For more information on Koolyanobbing, please visit the Mineral Resources website at: https://www.mineralresources.com.au/our-business/commodities/iron-ore/ Qualified Person Timothy J. Strong, MIMMM, of Kangari Consulting Limited and a \"Qualified Pers...