GEORGE TOWN, Cayman Islands,
April 26, 2021 /CNW/ - Vox
Royalty Corp. (TSXV: VOX) ("Vox" or the
"Company") is pleased to announce its operating and
financial results for the quarter and year ended December 31, 2020. All amounts are in U.S.
dollars unless otherwise indicated.
Kyle Floyd, Chief Executive
Officer stated: "The Company's significant achievements in 2020
have paved the way for another strong year for Vox investors in
2021. Vox started 2020 with one producing royalty, adding three
further producing royalties through acquisitions and is now
expected to finish 2021 with over seven producing royalties. This
growth in producing royalties is expected to increase our annual
royalty revenues by approximately C$2
million from 2020 to 2021. Our 40 operating partners
continue to actively progress our exploration and development
royalties towards production, which will support Vox's growth into
2022 and beyond."
Full Year 2020 Highlights
- Completed a brokered and non-brokered private placement in
May 2020 for aggregate gross proceeds
of C$13.75M;
- Completed a reverse take-over transaction and on May 25, 2020, began trading on the TSX Venture
Exchange ("TSXV") under the ticker "VOX";
- Recorded revenue of $126,227,
with inaugural revenues from the Brauna royalty commencing in Q3
2020 and from the Higginsville (Dry Creek) royalty commencing in Q4
2020;
- Maintained its industry-leading growth rate through the
completion of 14 transactions to acquire a total of 30 royalties
during the year;
- Received independent research coverage initiated by Cantor
Fitzgerald, Red Cloud Securities and Paradigm Capital Inc.;
- Consolidated its low portfolio risk by increasing the number of
its operating partners to over 40 during the period;
- Completed the acquisition of a proprietary royalty database
from Mineral Royalties Online Pty Ltd, which includes over 7,000
global royalties. The acquisition provides VOX with a first-mover
advantage to execute non-brokered royalty transactions, and the
majority of its 2019 and 2020 royalty transactions have been
completed on this basis; and
- Subsequent to December 31,
2020:
-
- Completed an additional three transactions to acquire a further
10 royalties;
- Completed an overnight marketed public offering for aggregate
gross proceeds of C$16.85M;
- Announced the appointment of Andrew
Kaip to the Company's Board of Directors; and
- Held a meeting of Warrantholders of 2,289,667 common share
purchase warrants that were originally set to expire on
May 14, 2022. The Warrantholders
unanimously voted in favour to amend the warrant to: (a) remove the
compulsory call option held by the Company; and (b) in conjunction
with the foregoing, extend the term of the warrants, such that the
warrants now expire on May 14, 2023.
Removing the compulsory call option unlocked C$2.3M of cash that was being held in reserve for
the call option.
Fourth Quarter 2020 Highlights
- Recorded revenue of $115,975 with
inaugural revenues from the Higginsville (Dry Creek) royalty
commencing in Q4 2020;
- Over 34,000 metres of partner-funded drilling completed on Vox
royalty-linked claims and tenements;
- On November 10, 2020, announced
entry into a binding purchase and sale agreement to acquire a
strategic North American royalty portfolio from Breakwater
Resources Ltd and other affiliates of parent group Nyrstar N.V.,
which was completed in January
2021;
- On November 25, 2020, announced
the acquisition of the development stage Brits vanadium royalty
operated by Bushveld Minerals Limited; and
- On November 13, 2020, the TSXV
approved a Normal Course Issuer Bid ("NCIB") made by the
Company. Under the terms of the NCIB, the Company may purchase for
cancellation up to 1,628,289 ordinary shares, being 5% of the
32,565,796 ordinary shares outstanding as at November 5, 2020, the date the Company filed the
NCIB application with the TSXV.
For complete details, please refer to the Consolidated Financial
Statements and associated Management Discussion and Analysis for
the quarter and year ended December 31,
2020, available on SEDAR (www.sedar.com) or on the Company's
website (www.voxroyalty.com).
2021 Outlook - Production Stage Assets
Based on operator guidance, Vox expects to increase its
producing royalty asset count within its existing portfolio from
four to seven, including:
- Segilola: advanced construction 1.5% NSR royalty in
Nigeria, capped at $3.5M, with Thor targeting first gold pour in Q2
2021;
- Bulong: pre-construction 1% NSR royalty in
Western Australia, with Black Cat
targeting commencement of production in Q4 2021;
- Koolyanobbing (Deception & Altair
Pits): producing 2% FOB revenue iron ore royalty over part
of the Deception Pit and all of the Altair Pit in Western Australia;
- Higginsville (Dry Creek): producing grade-linked
tonnage royalty in Western
Australia, covering part of the Hidden Secret, Mousehollow
and Paleochannels deposits;
- Brauna: producing 0.5% gross sales royalty interest
in Brazil, South America's largest operating diamond
mine, currently mining one of 21 kimberlite occurrences on the
property;
- Janet Ivy: producing tonnage royalty in
Western Australia, covering the
Janet Ivy gold mine; and
- Mt Moss: pre-restart 1.5% NSR royalty over base
metal, magnetite and silver production from mining lease ML10171
which covers the Mt Moss Fe-Cu-Zn Skarn Project ("Mt Moss
Mine") located 150km NW of Townsville in northern Queensland, which was on care and maintenance
when Vox acquired the royalty in 2020 with plans to be reopened in
Q2 2021.
Market-Making Services
The Company announces that it has retained the services of
Generation IACP Inc. ("GIACP") for market-making services in
accordance with TSXV policies.
For the purposes of assisting in maintaining an active and
orderly trading in the market of the Company's securities, GIACP
has been engaged on an arm's-length basis to contribute to market
liquidity and depth. In consideration for the services provided,
the Company will pay a monthly fee of C$7,500 in advance out of its cash on hand for an
initial six-month term, and such term will automatically renew for
subsequent three-month periods unless the Company provides written
notice of termination to GIACP at least 30 days' prior to end of
the term. GIACP will not receive any shares or options as
compensation for the arrangement and does not hold any interest,
directly or indirectly, in Vox or its securities. GIACP is a
registered dealer regulated by the Investment Industry Regulatory
Organization of Canada and its
head office is located at 22 St. Clair Avenue East, 18th
Floor, Toronto, ON, M4T 2S3.
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting Limited and a "Qualified Person" under NI
43-101, has reviewed and approved the scientific and technical
disclosure contained in this press release.
About Vox
Vox is a growth precious metals royalty and streaming company
with a portfolio of 50 royalties and streams spanning nine
jurisdictions. The Company was established in 2014 and has since
built unique intellectual property, a technically focused
transactional team and a global sourcing network which has allowed
Vox to become the fastest growing company in the royalty sector.
Since the beginning of 2019, Vox has announced over 20 separate
transactions to acquire over 45 royalties.
Technical and Third Party Information
Except where otherwise stated, the disclosure in this press
release is based on information publicly disclosed by project
operators based on the information/data available in the public
domain as at the date hereof and none of this information has been
independently verified by Vox. Specifically, as a royalty investor,
Vox has limited, if any, access to the royalty operations. Although
Vox does not have any knowledge that such information may not be
accurate, there can be no assurance that such information from the
project operators is complete or accurate. Some information
publicly reported by the project operators may relate to a larger
property than the area covered by Vox's royalty interests. Vox's
royalty interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
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 Vox's anticipated outlook
for the fiscal 2021 year, completion of certain anticipated
milestones, transactions and developments by the operators of
certain underlying projects and mines in respect of Vox's royalty
and stream portfolio, anticipated future cash flows, future
financial reporting by Vox, the receipt of payments from Vox's
mining royalty and streaming portfolio, the requirements for
regulatory approvals and third party consents, and the completion
of mine construction, production and expansion under construction
phases at the mines or properties that Vox holds an interests
in.
Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Vox to control or predict, that may cause Vox's
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the
impact of general business and economic conditions, the absence of
control over the mining operations from which Vox will receive
royalties, including risks related to international operations,
government relations and environmental regulation, the inherent
risks involved in the exploration and development of mineral
properties; the uncertainties involved in interpreting exploration
data; the potential for delays in exploration or development
activities; the geology, grade and continuity of mineral deposits;
the impact of the COVID-19 pandemic; the possibility that future
exploration, development or mining results will not be consistent
with Vox's expectations; accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties. 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, it does not undertake to update
this information at any particular time except as required in
accordance with applicable laws.
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.
SOURCE Vox Royalty Corp.