The 1.25-1.50% sliding scale gross revenue royalty over the mine includes 1.25% GRR payable when the benchmark 62% iron ore price is below A$100/tonne and 1.50% GRR payable when the price is above that.
Vox acquired the royalty from an arm's length private company for a consideration that included $US4.75 million in cash; $12.15 million in shares, comprising 4.35 million shares at C$3.53 per share; and 3.6 million share purchase warrants with an exercise price of C$4.50 and an expiry date of March 25, 2024.
Vox CEO Kyle Floyd said the company was attracted to the opportunity due to its immediate, incremental revenue, and non-brokered accretive nature of the transaction.
"We are also excited to increase our exposure to an A$11 billion [US$7.85] market cap, best-in-class operator, who we know well as the operator of our producing Koolyanobbing royalty asset," he said.
Vox noted that Wonmunna achieved 3 million tonnes per annum of ore in 2021 and has the optionality to expand to around 5 million-10 million tpa.
The royalty will add to Vox's portfolio of over 50 royalties and streams which span eight jurisdictions.
The company noted that since 2020, it has announced over 20 separate transactions to acquire over 45 royalties.
The 2022 share revenue guidance would be more than double Vox's 2021 realized revenues.
"The company expects revenues to be weighted towards the second half of the year across multiple operations in Western Australia, following expanded production from the Janet Ivy gold mine in the second half of 2022, first ore production from the Otto Bore gold mine, and potential toll-treatment from the Bulong gold royalty later in 2022," Vox said.
Vox's share price on May 26 was C$3.20. It had a market capitalization of C$126.62 million.
