TORONTO, Jan. 18, 2022
/CNW/ - Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF)
("Vox" or the "Company"), a high growth precious
metals focused royalty company, is pleased to announce that it has
executed a binding agreement with a private South African
registered company, to acquire two platinum group metals
("PGM") royalties for total consideration of up to
C$10,400,000.
Pursuant to the terms of the purchase and sale agreement, Vox
will issue C$1,500,000 of Vox common
shares (the "Vox Shares") upon closing and make additional
cash payments or issue additional Vox Shares (at Vox's sole
election) upon achievement of certain production milestones (the
"Transaction"). Closing of the Transaction remains
conditional upon customary approval by the TSX Venture Exchange for
the issue.
The royalties include a 1.0% gross receipts royalty over the
Dwaalkop Project ("Dwaalkop") and a 0.704% gross receipts
royalty over the Messina Project ("Messina", and together with Dwaalkop, the
"Royalties"), which collectively cover the full extent of
the Limpopo PGM Project ("Limpopo"), operated by Sibanye
Stillwater Ltd. ("Sibanye") (JSE: SSW / NYSE: SBSW). Limpopo
was last mined in 2009 via the existing Baobab shaft and
concentrator ("Baobab Operation"), which are both in place
and subject to ongoing re-opening feasibility studies by
Sibanye.
Transaction
Highlights(1)(2)(4)
- Provides exposure to a substantial 18 million ounce 4E
(platinum, palladium, rhodium, gold) Measured and Indicated PGM
resource and a further 18 million ounce 4E Inferred PGM resource
over past-producing mine on prolific Bushveld Igneous Complex
("BIC");
- Full surface and underground infrastructure in place at the
Baobab Operation, including a vertical shaft to 450m depth and a 90,000tpm concentrator which is
currently on short-term lease to Anglo American Platinum;
- Detailed feasibility study completed by Sibanye in 2017 and in
2020 the feasibility study was reviewed and a conceptual level
re-opening study for the Baobab Operation was completed, which
demonstrated the financial viability of the project;
- High-quality operating partner in Sibanye (current market
capitalization US$10 billion), who
currently manages 5 PGM and 5 gold operations in Sub-Saharan Africa
as well as 2 PGM operations in Montana;
- Significantly increases Vox's exposure to 'battery metals' such
as rhodium, copper and nickel contained within the resource – in
2007, Lonmin plc produced 73,600 ounces of PGMs, along with
752MT of nickel and 513MT of copper, at the Limpopo Project; and
- Near-term development potential with existing infrastructure in
place and categorised in Sibanye's South
Africa 2 – 5 year project development pipeline.
Riaan Esterhuizen, Executive Vice
President of Australia stated:
"We are very excited to be adding exposure to a fully
constructed world-class 18 million ounce PGM resource with
near-term restart potential from a US$10B operator. With mine infrastructure already
in place, feasibility studies underway and a financially strong
operating partner in Sibanye-Stillwater, we see tremendous upside
for these assets. Based on the existing resource alone and not
considering the upside from the fact that the resource is open at
depth, we see this asset as holding potential to become a
high-tonnage, multi-decade operation."
Kyle Floyd, Chief Executive
Officer stated: "Vox continues to successfully execute its
strategy of finding world-class royalties on de-risked operations
with meaningful near-term catalysts. This is an extraordinary
acquisition that we expect will provide significant value to Vox
shareholders for decades to come."
Asset Overview – Limpopo
Project(1)(2)(4)
The Limpopo Project is located on the northern sector of the
Eastern Limb of the Bushveld Igneous Complex ("BIC") in the Limpopo Province,
approximately 250km northeast of Johannesburg and 50km south of Polokwane
(Figure 1). The larger project area consists of three contiguous
mineral title areas, Voorspoed, Dwaalkop and Doornvlei (all
royalty-linked), which are centered around the Baobab Operation on
the Voorspoed mining right. The Royalties cover the full project
area, with the 0.704% gross receipts Messina royalty applicable over the Voorspoed
and Doornvlei properties and the 1.0% gross receipts Dwaalkop
royalty applicable over the Dwaalkop property.
The Baobab Operation currently has full surface and underground
infrastructure to support a designed mining rate of 90,000tpm,
including a vertical shaft to 450m
depth as well as 90,000tpm haulage capacity. Furthermore, the
Baobab Operation has a fully operational 90,000tpm concentrator
which is currently being leased to Anglo American Platinum,
preserving optionality for a potential Sibanye re-opening of the
Baobab Operation.
The Baobab Operation was a producing operation between
2002(3) and 2009 and reached a maximum extraction rate
of 75,000tpm. The mine was placed on care and maintenance in 2009.
The mining method applied during this period was conventional
down-dip stoping, conventional apparent dip raise, long-hole
stoping and mechanised, long-hole stoping.
The recent focus has been on comprehensive studies to deliver an
integrated development strategy for Limpopo, which includes not
only the Baobab mine but instead incorporates all three properties.
A detailed feasibility study was completed by DRA Global Limited in
2017, which proposed a phased approach, starting with the
re-opening of the Baobab Operation and then incorporating
production from the Dwaalkop and Voorspoed areas via a series of
decline portals. Sibanye completed a feasibility study in 2020 and
completed a conceptual re-opening study for the Baobab mine, based
on a mechanised long-hole stoping methodology. The steep-dipping
nature of the Merensky and UG2 Reefs are considered amenable to
further mechanisation which fits well with Sibanye's started
strategic goals.
Limpopo Resource Estimate as at 31 December 2020(1)(4)
Sibanye holds an attributable interest of 95.3% in the Baobab
(Voorspoed) and Doornvlei properties and 45.3% in the Dwaalkop
property (a joint venture with Northam Platinum Limited
("Northam")). Northam holds a 50% interest in the Dwaalkop
property with minority partners holding the remaining 4.7% interest
in each of the properties. The Voorspoed and Doornvlei mining
rights were granted on 26 February
2014 and are valid to 25 February
2044, whilst the Dwaalkop mining right was granted in Q3
2021 with final execution of the grant in progress.
Resources outlined in Table 1 reflect the attributable ounces
reported by Sibanye and Northam,
whilst the resources attributable to minority shareholders was
calculated by Vox using the Sibanye resource numbers. Accounting
for the 4.7% interest held by minorities and grossing up the
resource to a 100% attributable basis, delivers a total resource of
approximately 36.4 million 4E PGM ounces on an aggregated Measured,
Indicated and Inferred basis.
|
Sibanye
Share
|
Northam
Share
|
Minority
Shareholders
|
|
Tonnes
(Mt)
|
Grade
(g/t)
|
4E PGM
(Moz)
|
Tonnes
(Mt)
|
Grade
(g/t)
|
4E PGM
(Moz)
|
Tonnes
(Mt)
|
Grade
(g/t)
|
4E PGM
(Moz)
|
Merensky
Reef
|
|
|
|
|
|
|
|
|
|
Measured
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
1.0
|
3.9
|
0.1
|
0.00
|
0.00
|
0.00
|
0.05
|
3.9
|
0.01
|
Indicated
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
5.1
|
3.9
|
0.6
|
0.00
|
0.00
|
0.00
|
0.25
|
3.9
|
0.03
|
Baobab
East
|
0.6
|
4.0
|
0.1
|
0.00
|
0.00
|
0.00
|
0.03
|
4.0
|
0.00
|
Dwaalkop
JV
|
19.8
|
2.9
|
1.8
|
21.83
|
2.88
|
2.02
|
2.05
|
2.9
|
0.19
|
Doornvlei
|
7.6
|
3.7
|
0.9
|
0.00
|
0.00
|
0.00
|
0.37
|
3.7
|
0.05
|
Inferred
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
12.0
|
4.0
|
1.5
|
0.00
|
0.00
|
0.00
|
0.59
|
4.0
|
0.08
|
Baobab
East
|
2.5
|
3.9
|
0.3
|
0.00
|
0.00
|
0.00
|
0.12
|
3.9
|
0.02
|
Dwaalkop
JV
|
14.7
|
3.1
|
1.5
|
16.22
|
3.11
|
1.62
|
1.53
|
3.1
|
0.15
|
Doornvlei
|
10.8
|
3.9
|
1.4
|
0.00
|
0.00
|
0.00
|
0.53
|
3.9
|
0.07
|
UG2
Reef
|
|
|
|
|
|
|
|
|
|
Measured
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
1.1
|
4.4
|
0.2
|
0.00
|
0.00
|
0.00
|
0.05
|
4.4
|
0.01
|
Indicated
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
13.2
|
4.0
|
1.7
|
0.00
|
0.00
|
0.00
|
0.65
|
4.0
|
0.08
|
Baobab
East
|
1.0
|
4.1
|
0.1
|
0.00
|
0.00
|
0.00
|
0.05
|
4.1
|
0.01
|
Dwaalkop
JV
|
18.9
|
4.4
|
2.6
|
20.85
|
4.36
|
2.92
|
1.96
|
4.4
|
0.27
|
Doornvlei
|
28.8
|
4.6
|
4.3
|
0.00
|
0.00
|
0.00
|
1.42
|
4.6
|
0.21
|
Inferred
|
|
|
|
|
|
|
|
|
|
Baobab
Shaft
|
21.0
|
3.8
|
2.6
|
0.00
|
0.00
|
0.00
|
1.04
|
3.8
|
0.13
|
Baobab
East
|
3.6
|
4.1
|
0.5
|
0.00
|
0.00
|
0.00
|
0.18
|
4.1
|
0.02
|
Dwaalkop
JV
|
15.1
|
4.3
|
2.1
|
16.71
|
4.34
|
2.33
|
1.57
|
4.3
|
0.22
|
Doornvlei
|
22.5
|
4.9
|
3.5
|
0.00
|
0.00
|
0.00
|
1.11
|
4.9
|
0.17
|
Total
|
|
|
|
|
|
|
|
|
|
Measured
|
2.1
|
4.2
|
0.3
|
0.00
|
0.00
|
0.00
|
0.10
|
4.2
|
0.01
|
Indicated
|
95.1
|
4.0
|
12.2
|
42.68
|
3.60
|
4.94
|
6.79
|
4.0
|
0.85
|
Measured &
Indicated
|
97.2
|
4.0
|
12.5
|
42.68
|
3.60
|
4.94
|
6.9
|
|
0.86
|
Inferred
|
102.3
|
4.1
|
13.3
|
32.93
|
3.73
|
3.95
|
6.7
|
4.1
|
0.85
|
Total
Underground
|
199.5
|
4.0
|
25.9
|
75.61
|
3.66
|
8.89
|
13.56
|
4.0
|
1.71
|
Table 1: Limpopo 4E PGM Mineral Resource
estimate as at 31 December 2020
attributable to royalty
(Source:
https://www.sibanyestillwater.com/business/reserves-and-resources/ &
https://www.northam.co.za/)
For more information on the Limpopo Project, please visit the
Sibanye website at https://www.sibanyestillwater.com/ as well as
the Northam website at
https://www.northam.co.za/.
Transaction Closing
Closing of the Transaction is expected to occur in Q1 2022.
Closing of the Transaction will occur following satisfaction of
customary conditions.
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting LLC 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 high growth precious metals royalty and streaming
company with a portfolio of over 50 royalties and streams spanning
eight 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.
Further information on Vox can be found at www.voxroyalty.com.
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, statements regarding the
royalties and projects related thereto (including expectations for
production from the underlying projects and estimates of project
success) and the ability of Vox to continue to complete the
acquisition. 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.
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.
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.
Technical References & Notes:
(1)
|
Asset Overview -
https://www.sibanyestillwater.com/business/reserves-and-resources/.
The mineral resource estimate is dated 31 December 2020 and
published under consent of Lead Competent Person Andrew Brown, Vice
President: Mine Technical Services; a Competent Person under the
rules and requirements of the Southern African Institute of Mining
and Metallurgy (SAIMM) and an employee of Sibanye. Resources are
reported in compliance with the South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves
(SAMREC) and the South African Code for the Reporting of Mineral
Asset Valuation (SAMVAL) (2016 Editions).
|
(2)
|
Sibanye-Stillwater : SA PGM operations –
Investor day (session 3), 23 September 2021 -
https://thevault.exchange/?get_group_doc=245/1633518765-ssw-investor-days-session-3-SA-PGM-operations-23sep2021.pdf
|
(3)
|
Lonmin Platinum
Limpopo Division – Baobab TSF – Investor Information.
https://thevault.exchange/?get_group_doc=245/1561379071-lonmin-platinum-limpopo-division-baobab-TSF-07062019.pdf
|
(4)
|
Northam
Platinum Mineral Resources and Mineral Reserves statement as
at 30 June 2021-https://www.northam.co.za/. The mineral resource
estimate is dated 30 June 2021 and published under consent of Lead
Competent Person Andrew Brown, Vice President: Mine Technical
Services; a Competent Person under the rules and requirements of
the Southern African Institute of Mining and Metallurgy (SAIMM) and
an employee of Sibanye. Resources are reported in compliance with
the South African Code for Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (SAMREC) and the South
African Code for the Reporting of Mineral Asset Valuation (SAMVAL)
(2016 Editions).
|
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SOURCE Vox Royalty Corp.