Segilola is in the state of Osun in Nigeria, approximately 120km northeast of Lagos
Vox Royalty enters into binding agreement to acquire a construction-stage gold royalty on the Segilola Project. (Credit: Pete Linforth from Pixabay)
Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company”) is pleased to announce that it has entered into a binding agreement pursuant to which Vox will acquire a royalty on Thor Exploration Limited’s (“Thor”) (TSXV:THX) construction-stage Segilola Gold Project (“Segilola”) for consideration of C$900,000 comprised of C$650,000 in cash and C$250,000 in Vox shares (the “Transaction”)
Segilola is in the state of Osun in Nigeria, approximately 120km northeast of Lagos. According to the public disclosure record of Thor, construction commenced in February 2020 and first gold production is scheduled for Q2 2021. The deposit hosts open pit probable gold reserves of 405,000oz @ 4.2g/t (at 0.77g/t cut-off, resource estimate dated 04 Feb 2019). A 2019 Definitive Feasibility Study completed on 04 Feb 2019 outlines production estimates averaging 80,000oz of gold per annum over an initial 5-year mine life.
Transaction Highlights
- Exposure to a high-grade, open pit gold operation with first gold expected in Q2 2021, according to Thor.
- Additional near-term royalty revenue attributable to Vox from an operation which is expected to produce approximately 80,000oz of gold per annum over an initial 5-year life of mine.
- Thor announced full funding of the project after signing definitive documents in April 2020 for a total expected fundraising of US$104,500,000 led by the Africa Finance Corporation.
- Further exposure to the African continent, with this Transaction representing Vox’s second royalty acquisition in Africa.
Simon Cooper, Vice President of Corporate Development stated: “Vox is excited to add this near-term production gold royalty over the construction-stage Segilola project in Nigeria. In addition to our existing royalties over producing assets, this acquisition bolsters our portfolio of royalties across construction and development-stage properties which we anticipate will add to cash-flow in 2021. We look forward to further updates from Thor as they continue to build the project and move towards first gold pour.”
Royalty Terms
The royalty is a 1.5% net smelter return royalty in respect of all products mined from the property. Royalty payments are capped at US$3.5M (~C$4.73M1) and the royalty is subject to a certain buy-back provision of up to US$3.5M (~C$4.73M) less any amounts already paid to the royalty holder.
Transaction Closing
Closing of the Transaction is expected to occur before the end of September 2020. Closing of the Transaction will occur following satisfaction of customary conditions including the approval of the TSX Venture Exchange as well as execution of standard transaction documentation. Vox will use current cash on hand to fund the payment of the cash consideration for the Transaction.
Source: Company Press Release