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TORONTO, July 10, 2020 /CNW/ - Vox Royalty Corp.
(TSXV: VOX) ("Vox" or the
"Company") is pleased to announce that it has entered
into a binding agreement pursuant to which Vox will acquire a
royalty on Thor Exploration Limited's ("Thor") (TSXV:THX)
construction-stage Segilola Gold Project ("Segilola") for
consideration of C$900,000 comprised
of C$650,000 in cash and C$250,000 in Vox shares (the
"Transaction").
Segilola is in the state of Osun in Nigeria, approximately 120km northeast of
Lagos. According to the public
disclosure record of Thor, construction commenced in February 2020 and first gold production is
scheduled for Q2 2021. The deposit hosts open pit probable gold
reserves of 405,000oz @ 4.2g/t (at 0.77g/t cut-off, resource
estimate dated 04 Feb 2019). A 2019
Definitive Feasibility Study completed on 04
Feb 2019 outlines production estimates averaging 80,000oz of
gold per annum over an initial 5-year mine life. For more
information on Segilola, please visit the Thor website at
https://www.thorexpl.com/.
Transaction Highlights
- Exposure to a high-grade, open pit gold operation with first
gold expected in Q2 2021, according to Thor.
- Additional near-term royalty revenue attributable to Vox from
an operation which is expected to produce approximately 80,000oz of
gold per annum over an initial 5-year life of mine.
- Thor announced full funding of the project after signing
definitive documents in April 2020
for a total expected fundraising of US$104,500,000 led by the Africa Finance
Corporation.
- Further exposure to the African continent, with this
Transaction representing Vox's second royalty acquisition in
Africa.
Simon Cooper, Vice President of
Corporate Development stated: "Vox is excited to add this
near-term production gold royalty over the construction-stage
Segilola project in Nigeria. In
addition to our existing royalties over producing assets, this
acquisition bolsters our portfolio of royalties across construction
and development-stage properties which we anticipate will add to
cash-flow in 2021. We look forward to further updates from Thor as
they continue to build the project and move towards first gold
pour."
Royalty Terms
The royalty is a 1.5% net smelter return royalty in respect of
all products mined from the property. Royalty payments are capped
at US$3.5M (~C$4.73M1) and the royalty is subject
to a certain buy-back provision of up to US$3.5M (~C$4.73M)
less any amounts already paid to the royalty holder.
Transaction Closing
Closing of the Transaction is expected to occur before the end
of September 2020. Closing of the
Transaction will occur following satisfaction of customary
conditions including the approval of the TSX Venture Exchange as
well as execution of standard transaction documentation. Vox will
use current cash on hand to fund the payment of the cash
consideration for the Transaction.
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting Limited and a "Qualified Person" under National
Instrument 43-101 – Standards of Disclosure for Mineral Projects,
has reviewed and approved the scientific and technical disclosure
contained in this press release.
About Vox
Vox is a growth and precious metals focused mining royalty and
streaming company. Vox holds a portfolio of 41 royalties and
streaming assets and 1 royalty option. Vox's interests span eight
jurisdictions, including Australia, Canada, Peru,
Brazil, Mexico, the United
States, Madagascar and
Nigeria. Vox has been the fastest
growing royalty & streaming acquisition company since
January 2019, announcing 16 separate
royalty transactions. Further information on Vox can be found at
www.voxroyalty.com.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press
release relating to the Segilola Gold Project is based on
information publicly disclosed by Thor and based on the information
and data available in the public domain as at the date hereof. None
of such information or data has been independently verified by Vox.
Specifically, as a royalty investor, Vox has limited, if any,
access to the Segilola Gold Project. Although Vox does not have any
knowledge that such information may not be accurate, there can be
no assurance that such information from Thor is complete or
accurate.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate"
"plans", "estimates" or "intends" or stating that certain actions,
events or results " may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements". Forward-looking
statements are subject to a variety of risks and uncertainties
which could cause actual events or results to materially differ
from those reflected in the forward-looking statements.
The forward-looking statements and information in this press
release include, but are not limited to, information relating to a
potential royalty acquisition, the ability of Vox to continue to
complete acquisitions and the ability of the Vox management team to
continue to focus on acquisitions. Such statements and information
reflect the current view of Vox. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause Vox's actual results, performance or
achievements or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, the following risks:
- there is no assurance that the Segilola Royalty acquisition
will be completed;
- there is no assurance that the required approvals for the
Segilola Royalty acquisition, including the approval of the TSX
Venture Exchange will be obtained;
- there is no assurance that Vox will be able to use current
cash on hand to fund the acquisition of the Segilola
Royalty;
- there is no assurance that the construction of the Segilola
Gold Project will be completed as scheduled;
- there is no assurance that production from the Segilola Gold
Project will achieve the quantities of gold expected pursuant to
each development feasibility study and pre-feasibility study
completed;
- there is no assurance that Vox will be able to continue to
successfully negotiate the purchase of royalties; and
- new laws or regulations could adversely affect the Company's
business and results of operations; and
- the stock markets have experienced volatility that often has
been unrelated to the performance of companies, and these
fluctuations may adversely affect the price of the Company's
securities, regardless of its operating performance.
Should one or more of these risks, uncertainties or other
factors materialize, or should assumptions underlying the
forward-looking information or statement prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Vox cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking
statements and information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events.
Vox has assumed that the material factors referred to in the
previous paragraph will not cause such forward-looking statements
and information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject
to change and there can be no assurance that such assumptions will
reflect the actual outcome of such items or factors. The
forward-looking information contained in this press release
represents the expectations of Vox as of the date of this press
release and, accordingly, is subject to change after such date.
Readers should not place undue importance on forward looking
information and should not rely upon this information as of any
other date. While Vox may elect to do so, Vox does not undertake to
update this information at any particular time except as required
in accordance with applicable laws.
Not for distribution to United
States newswire services or for dissemination in
the United States. This press
release does not constitute an offer to sell or a solicitation of
an offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any
state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
_______________________
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1 As
per USD/CAD forex rate of 1.35 on 09 July 2020
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SOURCE Vox Royalty Corp.