Vox Royalty Corp. (TSX-V: VOX) 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 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.
The Company announces that it has retained the services of Generation IACP Inc. 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.
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.
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.