Vox Royalty Corp. (TSX-V: VOX) (OTCQX: VOXCF), a returns-focused precious metals royalty company, is pleased to announce that it has executed a binding royalty sale and purchase agreement dated June 3, 2022 with an individual prospector residing in Canada to acquire rights to three Canadian gold royalties for total consideration of up to C$1,800,000.
Pursuant to the terms of the purchase and sale agreement, Vox will pay C$100,000 cash at closing and make additional cash payments or issue common shares of Vox (at Vox’s sole election) as follows: C$500,000 or issue up to a maximum of 184,399 common shares in September 2022, C$700,000 or issue up to a maximum of 258,159 common shares in January 2023 and C$500,000 or issue up to a maximum of 184,399 common shares in December 2023. Closing of the Transaction remains conditional upon final acceptance by the TSX Venture Exchange.
The royalties include a 1.0% Net Smelter Returns royalty over part of the Goldlund Project in Ontario operated by Treasury Metals Inc. (TSX: TML), an effective 0.6% NSR royalty over the Beschefer Project in Quebec operated by Goldseek Resources Inc. (TSX-V: GSK) under option from Wallbridge Mining Company Limited, and all personal rights held to a 1.5% NSR royalty over the Gold River deposit in Ontario, which is a satellite deposit to the Timmins West mine operated by Pan American Silver Corp. (NASDAQ: PAAS).
Spencer Cole, Chief Investment Officer stated: “We are very excited to add these rapidly advancing Canadian gold royalties to the Vox portfolio, which offer significant near-term exploration and development catalysts for Vox shareholders. We are also pleased to support another private prospector with a mutually-beneficial transaction. Over the next 18 months, we expect a construction decision at Goldlund, a maiden resource statement at Beschefer and extensive discovery newsflow.”
Asset Overview – Goldlund(1)
The Goliath Gold Complex currently refers to a prospective 65km trend in a 330km2 land package comprised of three distinct mines/projects/deposits located within the Wabigoon-Greenstone belt in the Dryden-Sioux Lookout Area of northwestern Ontario, Canada.
The Goliath Gold Project (Mine + Mill) consists of the construction, operation, decommissioning, and remediation of an open-pit and underground gold mine and associated milling infrastructure including a tailings storage facility located 20km east of the City of Dryden, Ontario. The Goliath Gold Project received Federal Environmental Assessment Approval in 2019 with the Minister of Environment and Climate Change Canada concluding that the Goliath Gold Project was unlikely to result in significant adverse effects to the environment. Treasury has commenced the process of receiving additional permits and approvals to construct and operate the Goliath Gold Project (Mine + Mill).
Figure 1: Goldlund Royalty Location within Goliath Gold Complex
The GGC consists of three primary deposits, Goliath, Goldlund and Miller. The proposed development pathway envisaged in the GGC 2021 Preliminary Economic Assessment was a “hub & spoke” development strategy where a central mill would be developed at the Goliath Project, with ore mined across all three deposits and centrally processed at the Goliath mill.
The Goldlund deposit was the primary focus of Treasury’s 2021 drill campaign, with 68% of the total holes drilled for the April 2022 resource update. The updated resource for Goldlund is based on a total of 2,197 drill holes measuring 240,601 metres, incorporating 120 drill holes and 21,474 metres from the 2021 drilling campaign. The 2021 drilling campaign targeted the conversion of the Inferred Mineral Resource, much of which was halo mineralization at lower grades located within the open pit. In addition, higher-grade mineralization was targeted at depth, increasing the confidence and depth of the Mineral Resource open pit. At Goldlund, 100,000 ounces of gold were converted to Measured and Indicated Mineral Resources through the 2021 drill campaign, and an additional 392,500 ounces of gold were added to the Inferred Mineral Resource category.
Figure 2: Goldlund Royalty Area, Mineralised Zones and PEA Pit Designs
The Goldlund Royalty was created pursuant to a royalty agreement dated November 12, 2003 and covers nine patented claims and entitles Vox to a 1.0% NSR on any ore mined >50m depth beneath the historical Goldlund shaft collar. A historical partial buyback right to purchase 0.5% of the NSR for C$500,000 expired three years from the date of the royalty agreement. Vox management estimates that the royalty claims cover the majority of the Goldlund mineralized wireframes contained in the March 2021 PEA pit designs as shown in Figure 2.
Goldlund Resource Estimate as at 17 January 2022(1)
The following resource estimate outlined in Table 1 was updated by Treasury on 14 April 2022 as part of a consolidated GGC resource update that is based on a total of 3,185 drill holes measuring 540,329 metres for the Goliath, Goldlund and Miller deposits, incorporating 176 new drill holes and 41,072 metres since the mineral resource estimate set out in the March 2021 PEA of the GGC. This mineral resource estimate forms the basis for the pre-feasibility study on the project, which Treasury expects to complete in the second half of 2022.
Table 1: Goldlund Resource Estimate as at 17 January 2022
For more information on the Goldlund Project, please visit the Treasury website at https://treasurymetals.com/.
Asset Overview – Beschefer(2)
The Beschefer Project covers approximately 962 acres and is located in the Northern Abitibi Greenstone Belt, 14 km east of the past-producing polymetallic Selbaie Mine, 45 km northeast of the Casa Berardi Mine and 30 km from Wallbridge’s Fenelon Gold property. Historically, the area has mainly been explored for volcanogenic massive sulfide deposits similar to the Matagami camp and the Selbaie Mine.
Gold mineralization was discovered in the B-14 Zone in 1995 by Billiton Canada Inc. and the Beschefer Project saw very limited exploration before the involvement by Excellon in 2011, which completed approximately 17,000 metres of drilling up to 2013. There has been limited exploration at Beschefer since 2013 with the exception of 1,600 meters drilled by Wallbridge in 2018.
Figure 3: Beschefer Project Area and surrounding operators
Beschefer is the subject of a four-year option agreement dated on or around March 2, 2021 for Goldseek to acquire the Beschefer Property from Wallbridge for a C$3M work commitment and issuance of 4 million Goldseek shares. Goldseek management are currently focussed on 3D modelling of historical gold zones, completion of a 4,000m – 9,000m drilling program for 2022 and preparation of a maiden resource estimate, expected in the second half of 2022.
Historical drilling highlights at the Beschefer project include:
The Beschefer royalty is an effective 30% interest in a historical 2.0% NSR royalty that has an unexercised partial 1.0% NSR buyback for C$1.0M (on a 100% basis). For more information on the Beschefer Project, please visit the Goldseek website at https://www.goldseekresources.com/beschefer-project/ or the Wallbridge website at https://wallbridgemining.com/our-projects/other-gold-assets/beschefer/.
Asset Overview – Torogold
The Torogold Royalty was created pursuant to the Denton and Thorneloe Townships Property Sale and Purchase Agreement between Homestake Canada Inc. Torogold Resources Inc. and Band-Ore Resources Limited dated March 1, 1994. Both Homestake and Torogold Resources were each issued a 1.5% NSR royalty (3.0% NSR in aggregate), subject to a partial buyback right for each royalty of 0.5% NSR for C$1M that is currently unexercised.
The Homestake portion of the royalty rights were subsequently acquired by Royal Gold Inc. (NASDAQ: RGLD) and the Torogold Royalty rights were subsequently assigned from Torogold Resources to an individual prospector residing in Canada, the latter of which is the subject of the Transaction with Vox. The historical Torogold royalty area covers the Gold River gold deposit, which is further described in the Technical Report on the Update of Mineral Resource Estimate for the Gold River Property, Thorneloe Township, Timmins Ontario, Canada with an effective date of January 17, 2012, which can be found at this link here.
Further confirmatory due diligence on the Torogold royalty rights is ongoing, and for this reason, only a nominal purchase price has been ascribed to the royalty by Vox and the seller of the royalty. The rights purported to be assigned by the royalty seller to Vox are still subject of an ongoing review and may require supplemental information. Vox is in the process of obtaining additional information and/or documentation, which will be the primary focus of further due diligence and discovery work carried out by the Company.
The Transaction is subject to the final acceptance of the TSX Venture Exchange, which the Company expects will be delivered prior to the end of June 2022.
Market Awareness Engagement
Vox also announces that it has entered into an agreement for services with GRA Enterprises LLC, effective June 3, 2021, pursuant to which GRA will provide consulting and media advisory services. Services will include the production and publication of investor bulletins on the National Inflation Association website, distribution of investor bulletins to GRA’s e-mail list, posts via GRA’s social media accounts, and comprehensive coverage of developments at Vox in order to enhance the Company’s visibility and awareness with the global investment community, in accordance with TSX Venture Exchange policies and applicable securities laws. The Agreement has an initial term of three months, and, unless terminated at the option of either party, will renew for successive three-month periods. GRA will receive US$25,000 per three-month period out of the Company’s cash on hand as compensation for its services to the Company. GRA will not receive any securities as compensation and does not hold any interest, directly or indirectly, in Vox or its securities. GRA’s office is located at 112 Camp Lane, Mooresville, NC, 28117-8925.
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.
Vox is a returns focused precious metals royalty 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 target the highest risk-adjusted returns in the mining royalty sector. Since the beginning of 2020, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Figure 1: Goldlund Royalty Location within Goliath Gold Complex (Source: https://treasurymetals.com/site/assets/files/4246/treasury_metals_investor_presentation_may.pdf) (CNW Group/Vox Royalty Corp.)
Figure 2: Goldlund Royalty Area, Mineralised Zones and PEA Pit Designs (Source: https://treasurymetals.com/site/assets/files/4246/treasury_metals_investor_presentation_may.pdf) (CNW Group/Vox Royalty Corp.)
Table 1: Goldlund Resource Estimate as at 17 January 2022 (Source: https://treasurymetals.com/site/assets/files/4233/20220414_-_treasury_metals_ggc_mre_update_final.pdf) (CNW Group/Vox Royalty Corp.)
Figure 3: Beschefer Project Area and surrounding operators (Source: https://www.goldseekresources.com/beschefer-project/) (CNW Group/Vox Royalty Corp.)
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