NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, May 27, 2020 (GLOBE NEWSWIRE) — Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company”) is pleased to announce that it has entered into a binding Royalty Sale and Purchase Agreement dated May 26, 2020 pursuant to which Vox will acquire a royalty on select tenements within RNC Minerals’ (“RNC”) Higginsville Gold Operations (the “Royalty”) for consideration of A$650,000 comprised of A$350,000 in cash and A$300,000 in stock (the “Transaction”). The seller will be issued 89,706 Vox shares for the A$300,000 stock portion of the consideration. This transaction represents one of the four royalty acquisition opportunities under exclusive letters of intent (“LOIs”) referenced in the Vox press release dated May 25, 2020.
The Royalty was created in 1992 and is a tonnage-based royalty with escalators for gold grade mined and the spot Australian dollar-denominated gold price. The base gold price set in the 1992 royalty agreement was A$435/ounce (A$14/gram) which compares favourably with the spot Australian dollar-denominated gold price of A$2,666/ounce (US$1,746/ounce and 0.655 AUD:USD as at May 25, 2020). The current effective royalty rate is A$0.73/gram gold per tonne of ore treated (as at May 25, 2020).The Higginsville Gold Operations (“HGO”) are located in Western Australia near the town of Norseman and are owned and operated by RNC. Based on publicly available information, HGO was acquired by RNC in June-2019 for A$50 million and the 1.3Mtpa HGO Mill is currently processing gold ore from both HGO and the Beta Hunt Mine. The Royalty tenements cover 3,366 hectares located 4km to the southeast of the HGO Mill and include the following deposits with resource estimates under CIM standards: Paleochannels, Hidden Secret and Mousehollow.Transaction HighlightsAdds a near-term producing gold royalty which is part of the 2020/2021 HGO mine planProvides exposure to high grade exploration results from 2019/2020 at Hidden Secret and Mousehollow, including visible gold intersections at Hidden SecretAdds a strong TSX-V listed operating partner in RNCOver 17,500 metres (330 holes) drilled at HGO since RNC acquired the operation in June-201945,000 – 50,000 metres expected to be drilled by RNC in Western Australia in 2020 (HGO and Beta Hunt)Kyle Floyd, CEO of Vox stated: “Vox is excited to add this near-term producing gold royalty with considerable exploration upside to our growing portfolio. RNC is a well-respected operator with an impressive track record of brownfields exploration success, particularly at the Father’s Day Vein at Beta Hunt, which will enhance the exploration potential of the Dry Creek royalty. This acquisition is consistent with our strategy of acquiring producing and near-production royalties with a bias towards gold and Tier 1 jurisdictions such as Western Australia.”Dry Creek Royalty-linked Historical Resources as at June 30, 2018 (1)
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