In a news release, Vox Royalty Corp. (VOX:TSX.V) announced that it has "entered into a binding agreement with an Ottawa-based corporation pursuant to which Vox will acquire a 0.5% gross sales royalty interest on Lipari Mineração Ltda.'s (Minera Lipari) producing Brauna Diamond Mine."
The firm advised that the total transaction is valued at CA$330,000, which includes a cash payment in the amount of CA$165,000 and CA$165,000 in Vox Royalty Corp.'s capital stock. The company indicated that the stock component equates to 55,158 of the firm's common shares.
The firm noted that the Minera Lipari's Brauna Mine is located in the state of Bahia, Brazil, and is the largest operating diamond mine in South America. The company pointed out that Brauna is an open-pit mining operation that utilizes an owner-operated fleet to feed kimberlite ore to a 2,000 tpd processing plant. Current operations at the mine are concentrated on the Brauna3 kimberlite deposit, which is just one of the 21 kimberlite occurrences Minera Lipari is exploring and developing.
The firm stated that the major benefits of securing the new royalty transaction are that it gives the company exposure to South America's largest operating diamond mine, provides immediate royalty revenue attributable to Vox and offers a great deal of exploration upside from 21 additional kimberlite occurrences presently being explored by Minera Lipari.
The company's VP of Corporate Development Simon Cooper commented, "Vox is excited to add another revenue-generating royalty to our portfolio, particularly over South America's largest operating diamond mine. This deal brings immediate cash flow to the company and represents our 6th royalty transaction within three months of having listed on the TSX Venture Exchange."
Vox Royalty Corp. said it plans to use cash on hand on its balance sheet to fund the payment of the cash portion of the transaction. The firm noted that the transaction is expected to close by August 31, 2020 subject to certain customary closing conditions including the approval of the TSX Venture Exchange and completion of standard transaction documentation.
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