Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company”) is pleased to announce that it has entered into a binding agreement with Sable Metals and Minerals Pty Ltd (“Sable”) pursuant to which Vox will acquire a royalty over a portion of Bushveld Minerals Limited’s (“Bushveld”) (LSE: BMN) Brits Vanadium Project (“Brits”) for total consideration of US$2,000,000. Bushveld is one of the leading vanadium producers with some of the highest primary vanadium grades globally across its three mines. Vox will pay upfront US$500,000 in cash and US$250,000 in Vox shares (the “Transaction”). Two further milestone payments are payable, in cash or Vox shares, at the Company’s election, once certain production tonnage milestones are achieved; US$1,000,000 once 210,000t have been mined over a continuous six-month period and a further US$250,000 once 1,500,000t have been mined over a rolling 3-year time horizon. The Transaction remains conditional upon customary approval by the TSX Venture Exchange and the Financial Surveillance Department of the South African Reserve Bank.
Transaction Highlights
Exposure to a world-class, high-grade, outcropping vanadium resource, located adjacent to the Vametco Mine and within 3.5km from the Vametco Processing Facility.
The JORC compliant Competent Person’s Report published in January 2020 showed an aggregate Inferred and Indicated Mineral Resource distributed across three seams of 66.8 Mt @ 1.58 % V2O5 in-magnetite (refer to Table 1 for further information).
As Bushveld expands its annual vanadium output, Brits provides potential additional ore feed to Bushveld’s Vametco Facility and their Vanchem Processing Facility.
Bushveld’s 2020 production guidance for Vametco is 2,700 mtV – 2,850 mtV, with plans for a production ramp-up to 4,200 mtV per annum, subject to a definitive feasibility study; and 2020 guidance for Vanchem of 960 mtV – 1,100 mtV (currently being ramped-up via a 3-phase programme to >4,200 mtV per annum).(1)(2)
Unique exposure to globally significant vanadium producer in Bushveld Minerals, 1 of only 3 operating primary vanadium producers, owning 2 of the world’s 4 operating primary vanadium processing facilities.
Riaan Esterhuizen, Executive Vice President (Australia) stated: “Vox is excited to add this world-class, near-term production asset to its growing royalty portfolio. With the Brits resource being located immediately adjacent to the Vametco Mine, we expect that any future development will require minimal capital expenditure with Brits a ready ore source for Bushveld’s significant production growth plans. We look forward to further updates from Bushveld as they progress the Vametco and Vanchem ramp-up projects; both of which could act as a catalyst to the commencement of production from the Brits property. We thank Sable and Bushveld for their efforts during the transaction.”
Asset Overview
Brits is part of the world class Bushveld Vanadium deposits located within the North West Province of South Africa, approximately 75km northwest of Johannesburg and forms part of the regional Bushveld Vanadium Project. The Brits royalty covers the Uitvalgrond Portion 3 property which is located ~3.5km east of the Vametco vanadium processing facility and hosts the contiguous outcropping eastern strike extension of the open-pit Vametco mine.
As Bushveld expands its annual vanadium output, Brits provides potential additional ore feed to the Vametco Facility ~3.5km away, as well as to the Vanchem Processing Facility which Bushveld acquired in November 2019 and which is located 135km east of Brits near the town of Emalahleni (Witbank).
Bushveld has provided 2020 Production guidance for Vametco of 2,700 mtV – 2,850 mtV, with plans for a production ramp-up to 4,200 mtV per annum, subject to a definitive feasibility study; and 2020 guidance for Vanchem of 960mtV – 1,100 mtV (currently being ramped-up via a 3-phase programme to >4,200 mtV per annum).(1)(2) This Vanchem ramp-up is being partially funded through a US$35M convertible loan with Orion Mine Finance announced by Bushveld on November 9, 2020.
To maintain 2020 production levels of ~3,950mtV (Vametco + Vanchem) requires approximately 1.7Mt per annum run-of-mine mill feed while the potential expansion to ~8,400mtV would require an additional ~1.9Mtpa of ore feed(3).
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 45 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 15 separate transactions to acquire over 40 royalties.
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