TORONTO, June 6, 2022
/CNW/ - Vox Royalty Corp. (TSXV: VOX) (OTCQX:
VOXCF) ("Vox" or the "Company"), 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 (the "Transaction"). Closing of the Transaction
remains conditional upon final acceptance by the TSX Venture
Exchange.
The royalties include a 1.0% Net Smelter Returns ("NSR")
royalty over part of the Goldlund Project in Ontario ("Goldlund") operated by
Treasury Metals Inc. ("Treasury") (TSX: TML), an effective
0.6% NSR royalty over the Beschefer Project in Quebec ("Beschefer") operated by
Goldseek Resources Inc. ("Goldseek") (TSXV: GSK) under
option from Wallbridge Mining Company Limited
("Wallbridge"), and all personal rights held to a 1.5% NSR
royalty over the Gold River deposit in Ontario ("Torogold"), which is a
satellite deposit to the Timmins West mine operated by Pan American
Silver Corp. ("Pan American") (NASDAQ: PAAS) (together the
"Royalties").
Transaction
Highlights(1)(2)(3)
- Provides exposure to the substantial Goldlund Project
resource(1), recently upgraded to 940,000 ounces
Indicated and a further 703,500 ounces Inferred which is a key part
of Treasury's integrated Goliath Gold Complex Project
("GGC");
- Treasury are targeting the completion of a Pre-Feasibility
Study for GGC in the second half of 2022, a feasibility study in
the first half of 2023, a construction decision in the fourth
quarter of 2023 and commencement of mining operations in fourth
quarter of 2025, as per Treasury's May
2022 investor presentation;
- Treasury's April 2022 resource
upgrade for the GGC was based on 41,072m drilling in 2021, of which 23,200m was completed at Goldlund, with
additional GGC drilling planned for 2022;
- At Beschefer(2), which is located 30km south of
Wallbridge's Fenelon Gold Project, Goldseek are currently
undertaking a 4,000m drilling
program, with plans for an incremental 5,000m Summer 2022 drilling program and a maiden
resource estimate for Beschefer in the second half of 2022 (per
Goldseek's March 2022 presentation);
and
- Potential longer-term optionality from the Torogold royalty
rights, which cover the historical Gold
River gold deposit(3) adjacent to the Timmins
West mine operated by Pan American.
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
(Source:
https://treasurymetals.com/site/assets/files/4246/treasury_metals_investor_presentation_may.pdf)
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
(Source:
https://treasurymetals.com/site/assets/files/4246/treasury_metals_investor_presentation_may.pdf)
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
(Source:
https://treasurymetals.com/site/assets/files/4233/20220414_-_treasury_metals_ggc_mre_update_final.pdf)
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
(Source:
https://www.goldseekresources.com/beschefer-project/)
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:
- 55.63 g/t gold over 5.57 metres in hole BE13-038 (including 224
g/t over 1.23m)
- 13.07 g/t gold over 8.75 metres in hole B12-014 (including 58.5
g/t over 1.5m)
- 3.56 g/t gold over 28.4 metres in hole B14-006 (including 7.42
g/t over 5.5m)
- 10.28 g/t gold over 8.00 metres in hole B14-35 (including 86.74
g/t over 0.60m)
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. ("Homestake"), Torogold
Resources Inc. ("Torogold Resources") 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.
Transaction Closing
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 (the "Agreement") with GRA Enterprises LLC
("GRA"), 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.
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 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.
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
construction decisions, resource estimates or production from the
underlying projects and estimates of project success), the ability
of Vox to complete adequate due diligence on all three
royalties to a satisfactory level, and the ability of the company
to acquire effective ownership of all three royalties. 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) Goldlund Resource Estimate released April 14, 2022 and dated January 17, 2022 -
https://treasurymetals.com/news/treasury-metals-announces-updated-mineral-resource-122752/.
a. Mineral Resources were estimated by
ordinary kriging by Dr. Gilles
Arseneau, associate consultant of SRK Consulting
(Canada) Inc., Mineral Resources
were prepared in accordance with NI 43-101 and the CIM Definition
Standards for Mineral Resources and Mineral Reserves (2014) and the
CIM Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines (2019). This estimate of Mineral Resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
Mineral Resources that are not mineral reserves do not have
demonstrated economic viability.
b. Goldlund Open Pit Mineral Resources are reported within an
optimized constraining shell at a cut-off grade of 0.3 g/t gold
that is based on a gold price of US$1,700/oz and a gold processing recovery of
90.344*Au(g/t)^0.0527.
c. Goldlund Underground Mineral Resources are reported inside
DSO shapes at a cut-off grade of 2.2g/t gold that is based on a
gold price of US$1,700/oz and a gold
processing recovery of 90.344*Au(g/t)^0.0527.
d. Gold and Silver assays were capped prior to compositing
based on probability plot analysis for each individual zones.
Assays were composited to 1.5 m for
Goliath, 2.0 m for Goldlund and
1.0 m for Miller.
e. Excludes unclassified mineralization located within mined
out areas.
f. Silver grade and ounces are derived from the Goliath
tonnage only.
g. Goliath Open Pit and Goldlund/Miller cut-off grades are
0.25g/t and 0.30g/t, respectively.
h. All figures are rounded to reflect the estimates' relative
accuracy, and totals may not add correctly.
i. It is important to note that this updated MRE has not yet
been applied to the PEA. The PEA is based on the Technical Report
(as defined above). The updated MRE contained in this news release
does not have a negative impact on or otherwise adversely affect
the MRE that formed the basis of the PEA, as there was additional
drilling and changes were made to the MRE methodology to better
capture the geometry and continuity of the mineralization. Treasury
does not feel that it is necessary to update the PEA at this time
as it is working towards a pre-feasibility study, which will
incorporate this updated MRE. However, the PEA remains valid based
on the smaller MRE estimate contained in the Technical Report.
j. For information on the Goliath Gold Complex, please refer
to the Preliminary Economic Assessment, prepared in accordance with
NI 43-101, entitled "NI 43–101 Technical Report & Preliminary
Economic Assessment of the Goliath Gold Complex" and dated
March 10, 2021 with an effective date
of January 28, 2021 (the "Technical
Report"), led by independent consultants Ausenco Engineering Canada
Inc. The Technical Report is available under the Company's issuer
profile on SEDAR at www.sedar.com, on the OTCQX at
www.otcmarkets.com and on the Company website at
https://treasurymetals.com/site/assets/files/4156/treasury_metals_pea_final_revised_mar_10_2021.pdf.
(2) Beschefer Asset Overview information sourced from
https://www.goldseekresources.com/beschefer-project/.
(3) Torogold Asset Overview information sourced from 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:
https://www.sec.gov/Archives/edgar/data/1279944/000110465912024569/a12-9222_1ex99d1.htm.
SOURCE Vox Royalty Corp.