Kyle Floyd, CEO and Chairman of Vox Royalty (TSX: VOXR) (NASDAQ: VOXR), joins us to review a few royalty partner project updates, along with the overall plan for more deals with the new $25Million credit facility.
We start off getting a brief exploration and development update for the Red Hill gold project in Western Australia from Vox’s royalty operating partner Northern Star Resources Limited announced back on November 21, 2023. Vox holds a 4% gross revenue royalty over mining lease M27/57 at Red Hill, which Vox management estimates covers the majority of the Inferred resource. Then we discussed the acquisition of the 0.5% net smelter return (“NSR”) royalty on the Hawkins Gold Project, currently being explored under option by E2Gold Inc., for gross cash proceeds of C$100,000. Kyle also provided some updates on Autobore, Mt Ida, and Puzzle North as royalties growing in revenues for various value drivers, and that there are plenty more royalty assets in the development pipeline moving projects forward.
We wrap up getting a breakdown of the terms and synergies from the definitive credit agreement with the Bank of Montreal providing for a $15 million secured revolving credit facility announced on January 16, 2024. The Facility includes an accordion feature which provides for an additional $10 million of availability subject to certain conditions. This provides a better cost of capital for pursuing future royalty acquisition deals, and leads into a discussion on how the management team at Vox has excelled with regards to their return on invested capital.
If you have any follow up questions for Kyle and the team at Vox, then please email us at Fleck@kereport.com and Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Vox Royalty at the time of this recording.
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