TORONTO, April 26,
2022 /CNW/ - Vox Royalty Corp. (TSXV: VOX)
(OTCQX: VOXCF) ("Vox" or the "Company") is
pleased to announce its operating and financial results for the
fourth quarter and year ended December 31,
2021. All amounts are in U.S. dollars unless otherwise
indicated.
Kyle Floyd, Chief Executive
Officer stated: "2021 was a significant value accretive year for
the Company, delivering peer leading shareholder-focused growth.
Vox achieved record revenues, gross profits and operating cash
flows while continuing to grow value per share through disciplined
accretive transactions. 2022 will be a highly productive year of
rapid organic portfolio development, accretive royalty acquisitions
and expanded capital markets awareness with a potential secondary
NASDAQ listing. The current environment for the Vox portfolio of
royalties in tandem with the acquisitional growth landscape for the
business is the strongest it has been over the nine-year corporate
history of Vox."
Full Year 2021 Highlights
- Record revenue of $3,651,717
(C$4,584,000);
- Record cash flows from operating activities of $768,346;
- Record gross profit of $2,679,125;
- Strong balance sheet position at period end, including cash on
hand of $5,064,802, working capital
of $6,209,207 and total assets of
$27,305,421;
- Divested two non-core graphite royalties, recognizing a gain on
sale of $2,030,700;
- More than doubled 2021 annual revenue guidance in July 2021 and fulfilled the increased
forecast;
- Increased production stage royalty asset count from two at the
end of 2020 to five asset at the end of 2021;
- Maintained its industry-leading growth rate though the
completion of 7 transactions to acquire a total of 17 royalties
during the year, reaching a total critical mass of >50 royalties
and streams;
- Pursuant to the Company's normal course issuer bid, purchased
and cancelled 758,400 common shares at an average share price of
C$2.95;
- Commenced trading on the OTCQX on August
10, 2021; and
- Significant operating partner updates, including over 170,000
metres of partner-funded drilling completed on Vox royalty-linked
claims and tenements.
Fourth Quarter 2021 Highlights
- Revenue of $574,214;
- Cash flows from operating activities of $417,973;
- Increased producing royalty count to 5 assets following
achievement of commercial production at the Segilola Gold Mine, as
reported by Thor Explorations Ltd. (TSXV: THX) on October 5, 2021; and
- Expanded independent research coverage following initiation by
Laurentian Bank Securities.
Subsequent to 2021
- Executed a binding agreement with a private, arm's-length,
South African registered company, to acquire two platinum group
metals royalties for total consideration of up to C$10,400,000, described further in the
Transaction Updates section of this press release;
- Released its inaugural Asset handbook;
- Announced the filing of an initial application to list its
common shares on The NASDAQ Stock Market; and
- Significant operator updates, including:
-
- Feasibility study released for the South Railroad gold project
in Nevada;
- 106% increase in mineral resource at the Pedra Branca platinum
group element project;
- Maiden Puzzle North gold resource estimate; and
- 113% increase in gold resource estimate at the Bulgera gold
project in Australia.
Summary of Quarterly and Annual Results
|
Three months
ended
|
Year
ended
|
|
December
31,
2021
|
December 31,
2020
|
December 31,
2021
|
December 31,
2020
|
|
$
|
$
|
$
|
$
|
Statement of loss
and comprehensive loss
|
|
|
|
|
Revenues
|
574,214
|
115,975
|
3,651,717
|
126,227
|
Gross profit
|
199,656
|
99,905
|
2,679,125
|
105,391
|
Net loss
|
(4,320,912)
|
(2,751,464)
|
(4,132,019)
|
(10,231,403)
|
Net loss per
share
|
(0.11)
|
(0.09)
|
(0.11)
|
(0.35)
|
Cash flows from
(used in) operating activities
|
417,973
|
(453,254)
|
768,346
|
(1,844,454)
|
For complete details, please refer to the Consolidated Financial
Statements and associated Management Discussion and Analysis for
the year ended December 31, 2021,
available on SEDAR (www.sedar.com) or on Vox's website
(www.voxroyalty.com).
Transaction Updates
El Molino (Peru)
On April 26, 2022, Vox entered
into a sale and purchase agreement with a subsidiary of hearing aid
technology company Nuheara Ltd. ("Terrace Gold") to acquire
all of Terrace Gold's rights and interests in an agreement with
Lumina Copper S.A.C, which includes the right to receive the El
Molino 0.5% NSR royalty in Peru.
The upfront consideration issued to Nuheara Ltd. will be
US$50,000 in common shares of the
Company, subject to the approval of the TSX Venture Exchange. A
further payment of US$450,000 is
payable, in cash or common shares of the Company (at the Company's
sole election), following the registration of the El Molino royalty
rights on the applicable mining title in Peru and the satisfaction of other customary
completion conditions.
The El Molino claim is part of the integrated pre-feasibility
stage El Galeno porphyry copper-gold-molybdenum-silver property and
is owned and operated 60% by China Minmetal Non-Ferrous Metals Co.,
Ltd. ("China Minmetals") and 40% by Jiangxi Copper Company
Ltd. ("Jiangxi Copper"). In March
2008, the prior El Galeno project operator Northern Peru
Copper Corp. was acquired for C$455
million in a takeover by an acquisition corporation owned
60/40 by China Minmetals and Jiangxi Copper.
PGM Royalties (South
Africa)
Vox is pleased to announce that it has completed the acquisition
of two royalties (the "PGM Royalties") from a private, arm's
length, South African registered company (the "SA Vendor"),
as originally announced in the Vox press release dated January 18, 2022 (the "Announcement").
Pursuant to the terms of the transaction documents, the SA
Vendor was issued 409,500 common shares of Vox for the upfront
stock portion of the purchase price, being C$1,500,000 (the "Vox Shares"). The Vox
Shares were issued at the trailing 5-day volume weighted average
price prior to the date of the Announcement, being C$3.663 per Vox Share. Vox will be required to
pay the SA Vendor up to an additional C$8,900,000 in common shares of Vox, cash, or a
mixture of cash and common shares (at Vox's sole election) on the
occurrence of the following events: (i) C$1,500,000 within 10 business days of cumulative
royalty receipts from the PGM Royalties by Vox or an affiliate
thereof exceeding C$500,000; (ii)
C$400,000 within 10 business days of
cumulative royalty receipts from the PGM Royalties by Vox or an
affiliate thereof exceeding C$1,000,000; (iii) C$7,000,000 within 10 business days of cumulative
royalty receipts from the PGM Royalties by Vox or an affiliate
thereof exceeding C$50,000,000. For
additional information, please refer to the Announcement at
www.voxroyalty.com.
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting LLC and a "Qualified Person" under NI 43-101,
has reviewed and approved the scientific and technical disclosure
contained in this press release.
About Vox
Vox is a high growth precious metals royalty and streaming
company with a portfolio of over 50 royalties and streams spanning
eight jurisdictions. The Company was established in 2014 and has
since built unique intellectual property, a technically focused
transactional team and a global sourcing network which has allowed
Vox to become the fastest growing company in the royalty sector.
Since the beginning of 2019, Vox has announced over 20 separate
transactions to acquire over 45 royalties.
Further information on Vox can be found at
www.voxroyalty.com.
Cautionary Note Regarding Forward Looking Information
This press release contains certain forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate"
"plans", "estimates" or "intends" or stating that certain actions,
events or results " may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements". Forward-looking
statements are subject to a variety of risks and uncertainties
which could cause actual events or results to materially differ
from those reflected in the forward-looking statements.
The forward-looking statements and information in this press
release include, but are not limited to Vox's
anticipated outlook for the fiscal 2022 year, completion of certain
anticipated milestones, transactions and developments by the
operators of certain underlying projects and mines in respect of
Vox's royalty and stream portfolio, anticipated future cash flows,
future financial reporting by Vox, the receipt of payments from
Vox's mining royalty and streaming portfolio, the completion of
mine construction, production and expansion under construction
phases at the mines or properties that Vox holds an interests in,
and the potential listing of Vox's common shares on the
NASDAQ.
Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Vox to control or predict, that may cause Vox's
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the
impact of general business and economic conditions, the absence of
control over the mining operations from which Vox will receive
royalties, including risks related to international operations,
government relations and environmental regulation, the inherent
risks involved in the exploration and development of mineral
properties; the uncertainties involved in interpreting exploration
data; the potential for delays in exploration or development
activities; the geology, grade and continuity of mineral deposits;
the impact of the COVID-19 pandemic; the possibility that future
exploration, development or mining results will not be consistent
with Vox's expectations; accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties. Should one or more of these risks,
uncertainties or other factors materialize, or should assumptions
underlying the forward-looking information or statement prove
incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated, believed, estimated or
expected. Vox cautions that the foregoing list of material factors
is not exhaustive. When relying on the Company's forward-looking
statements and information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events.
Vox has assumed that the material factors referred to in the
previous paragraph will not cause such forward looking statements
and information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject
to change and there can be no assurance that such assumptions will
reflect the actual outcome of such items or factors. The
forward-looking information contained in this press release
represents the expectations of Vox as of the date of this press
release and, accordingly, is subject to change after such date.
Readers should not place undue importance on forward looking
information and should not rely upon this information as of any
other date. While Vox may elect to, it does not undertake to update
this information at any particular time except as required in
accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press
release is based on information publicly disclosed by project
operators based on the information/data available in the public
domain as at the date hereof and none of this information has been
independently verified by Vox. Specifically, as a royalty investor,
Vox has limited, if any, access to the royalty operations. Although
Vox does not have any knowledge that such information may not be
accurate, there can be no assurance that such information from the
project operators is complete or accurate. Some information
publicly reported by the project operators may relate to a larger
property than the area covered by Vox's royalty interests. Vox's
royalty interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
SOURCE Vox Royalty Corp.