The Pitombeiras project was transferred to an affiliate of Jangada when the Pedra Branca platinum group metals project tenure was split between ValOre Metals and Jangada two years ago
Vox Royalty Corp (TSXV:VOX) (OTCMKTS:VOXCF) updated on news of its 1% net smelter return (NSR) royalty on the Pitombeiras vanadium project in Brazil, where operator Jangada Mines PLC has just delivered a robust maiden preliminary economic assessment (PEA) and guided for first production in the first quarter of 2022.
The PEA shows robust economics for the US$106.5 million project, highlighted VOX, for a six-year operation, with US$271.3 million of total gross revenue forecast.
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The Pitombeiras project was transferred to an affiliate of Jangada when the Pedra Branca platinum group metals project tenure was split between ValOre Metals and Jangada two years ago. Vox retained a 1% NSR across both the Pitombeiras and Pedra Branca projects.
“Vox assumed the Pitombeiras royalty in 2019 when the Pitombeiras project claims were split from the Pedra Branca PGM project,” Kyle Floyd, CEO at Vox told investors on Tuesday.
“Vox investors, with the PEA results, have visibility around potential life of mine royalty revenues of over US$2.5M, with vast expansion opportunity, and potential to commence production as early as Q1 2022,” he highlighted.
“This update certainly exceeded expectations. Vox congratulates the Jangada team on these key development milestones at Pitombeiras. We look forward to sharing more updates with Vox investors on the Pitombeiras asset as the PEA is updated in Q2 2021, feedback is received on the trial mining license application in Q3 2021 and first production is targeted for Q1 2022.
“This exciting asset update demonstrates the embedded organic growth that Vox shareholders continue to benefit from, through our portfolio of 50 royalty and streaming assets that are being actively progressed by well-financed and experienced operators.”
Vox also provided a potential development timeline from Jangada for the Pitombeiras project:
- February 16, 2021 – Maiden PEA released for Pitombeiras project
- March 19, 2021 – Application submitted for trial mining license
- Q2 2021 – further upside to economics expected to be delivered in revised PEA, including potential expanded mineral resources upon conclusion of ongoing drilling program
- Q3 2021 – feedback from ANM anticipated on the trial mining license application
- Q1 2022 – first production from Pitombeiras targeted
Established in 2014, Vox is a high growth precious metals royalty and streaming company with a portfolio of 50 assets spanning nine jurisdictions. Since the beginning of 2019, the company has announced over 20 separate transactions to acquire over 45 royalties.
