Vox Royalty Enters into Binding Agreements to Acquire the Saxby GOLD Royalty and the Uley Graphite Royalty
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
VOX ROYALTY ENTERS INTO BINDING AGREEMENTS TO ACQUIRE THE SAXBY GOLD
ROYALTY AND THE ULEY GRAPHITE ROYALTY
TORONTO, ONTARIO – June 16, 2020 – Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company”) is
pleased to announce that it has entered into two binding Royalty Sale and Purchase Agreements with arm’s length
parties dated June 15, 2020.
Vox will acquire a 1.5% gross revenue royalty on the high grade development-stage Uley graphite project held by
Quantum Graphite Limited (“ QGL”) in South Australia (the “ Uley Royalty”) for consideration of A$500,000
comprised of A$80,000 in cash and A$420,000 in Vox shares (the “ Uley Transaction”). The seller will be issued
58,031 Vox shares for the A$200,000 upfront share portion of the consideration and a further A$220,000 in Vox
shares once commercial production has been achieved at the Uley Graphite Project.
Vox will also acquire a 1.5% net smelter return royalty covering Strategic Energy Resources Limited’s (“SER”) Saxby
Gold Project in Queensland Australia (the “Saxby Royalty”) for consideration of US$80,000 comprised of US$50,000
in cash and US$30,000 in Vox shares (the “Saxby Transaction”). The seller will be issued 12,675 Vox shares for the
US$30,000 share portion of the consideration. The acquisition of the Saxby Royalty from STEMify Limited (formerly
Robo 3D Limited) further demonstrates Vox’s consistent strategy of identifying and acquiring royalties held by non-
mining focussed companies – similar to Vox’s historical royalty transactions with telecommunications company
Vonex Limited and hearing technology company Nuheara Limited.
Transaction Highlights
The Uley Royalty adds a fully permitted development stage graphite royalty covering a high-grade coarse-
flake JORC-compliant resource of 5.0Mt @ 11.5% Total Graphitic Carbon (Measured & Indicated as at June
30, 2019)
The Uley feasibility study update released in December 2019 covered an 8 year potential operation with
annual crusher feed of 500Ktpa targeting production of a graphite concentrate grading 94% TGC at 84%
graphitic carbon recovery with ~73% of overall production in the Medium to Extra-Large Flake size fractions
The Uley Graphite Project is the only permitted graphite development project in Australia (QGL presentation,
December 18, 2019), subject only to securing offtake arrangements and project financing
The Saxby Royalty adds an gold exploration royalty with high grade potential in Saxby with an innovative
exploration operating partner in SER
Provides exposure to high-grade gold exploration results at the Saxby Gold Project as disclosed by SER
Spencer Cole, Executive Vice President of Vox stated: “Vox is excited to add these two overlooked royalties to our
growing portfolio of 40 royalties and streams. The Uley graphite project is a high grade ‘shovel-ready’ graphite
development project and the Saxby Gold Project is an exciting high-grade gold exploration project that is actively
being progressed by an innovative partner in Strategic Energy Resources. These acquisitions are consistent with our
strategy of acquiring high quality royalties in Tier 1 jurisdictions such as Australia from unconventional sellers who
are motivated to realize value for their shareholders by monetizing non-core assets.”
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Uley Graphite Development Royalty
The Uley Royalty covers 2 Mining Licenses, 2 Retention Licenses and 1 Exploration License encompassing the Uley
Graphite Project area. The Uley Graphite Project is located on the Eyre Peninsula in South Australia, approximately
20km southwest of the deep water port of Port Lincoln.
An update to the definitive feasibility study (“DFS”) revising the mining study and the ore reserve estimate was
released by QGL for the Uley Graphite Project on December 11, 2019 which summarized total undiscounted operating
cashflow of A$207 million from an 8 year operation with annual crusher feed of 500Ktpa targeting production of a
graphite concentrate grading 94% TGC at 84% graphitic carbon recovery.
According to the DFS, comprehensive metallurgical testwork has confirmed a high quality production mix of ~73%
of overall production in the Medium (27.1% weighting, 96.6% gC purity), Large (35.4% weighting, 97.2% gC purity)
and Extra-Large Flake (10.5% weighting, 97.8% gC purity) size fractions.
The project is the only permitted graphite mine in Australia, following the issuance of the Program for Environment
Protection and Rehabilitation (“PEPR”) from the South Australian Department of Energy and Mining (“DEM”) on
December 24, 2014. QGL is currently focused on offtake arrangements, project financing and optimizing the DFS.
Uley Resource Estimate as at June 30, 2019 (1)
Classification Cutoff Grade
(% TGC)
Tonnes
(Mt)
Graphitic Carbon
Grade (%)
Contained
Graphite (Kt)
Measured 3.5% 0.8 17.5% 125
Indicated 3.5% 4.2 10.4% 435
Inferred 3.5% 1.3 10.5% 137
Notes to the Mineral Resources Table:
i. Source: Quantum Graphite Limited, Further Update of Mining Study and Ore Reserve Estimate DFS Update, 11 December 2019.
ii. Rounding may result in minor discrepancies in totals.
(1) For more information on the Uley Graphite Project, please visit QGL’s website at www.quantumgraphite.com.
Saxby Gold Exploration Royalty
The Saxby Royalty covers EPM 15398 and is located 150km northeast of Cloncurry in northwest Queensland
Australia. Mesozoic sediments of the Carpentaria Basin unconformably overlie deformed and metamorphosed
basement rocks of the Mt Isa Eastern Succession with the cover sequence greater than 400m thick. Exploration at the
Saxby Gold Project has previously identified high-grade gold mineralisation at the Lucky Squid Prospect.
According to SER’s target generation model, gold mineralisation at the Saxby Gold Project is characterised by intense
pyrite alteration overprinting calcite-magnetite veins and breccia, associated with a network of chlorite vein arrays
and hydrofractures suggesting a variant of an Iron Oxide Copper-Gold mineral system (SER December 7, 2016) .
Historical drilling of large magnetic and gravity anomalies by MIM Exploration from 1992 – 1998 identified a nickel-
copper sulphide exploration target named the Tea Tree Prospect.
Drill testing of the Lucky Squid gold prospect was most recently undertaken by SER on the interpreted structure
between previously identified high grade gold intercepts in November-2019. SER plans to complete further diamond
drilling to test the extent and continuity of the high-grade gold mineralised structures at the Saxby Gold Project.
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For more information on the Saxby Gold Project, please visit SER’s website at www.strategicenergy.com.au
Transaction Closing
Closing of the Uley Transaction and the Saxby Transaction (together the “ Royalty Transactions”) are expected to
occur before the end of the quarter. Closing of the Royalty Transactions will occur following satisfaction of customary
conditions including the approval of the TSX Venture Exchange and Vox, the seller, and the operator’s subsidiaries
entering into assignment agreements. Vox will use current cash on hand to fund the payment of the cash consideration
for the Royalty Transactions.
Qualified Person
Timothy J. Strong, MIMMM, of Kangari Consulting Limited and a “Qualified Person” under National Instrument
43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical
disclosure contained in this press release.
About Vox
Vox is a growth and precious metals focused mining royalty and streaming company that was incorporated under the
Companies Law of the Cayman Islands as a Special Economic Zone Company on January 22, 2014. Vox holds a
portfolio of 39 royalties and streaming assets and 1 royalty option. Vox’s interests span seven jurisdictions, including
Australia, Canada, Peru, Brazil, Mexico, the United States and Madagascar. Vox has royalties on producing mines in
addition to royalties over several long-life, development-stage assets. Recognizing the upside potential of exploration
success, Vox also acquires and holds a portfolio of royalties over exploration-stage assets. Vox has been the fastest
growing royalty & streaming acquisition company since January-2019, announcing 14 separate royalty transactions.
Further information on Vox can be found at www.voxroyalty.com.
Technical and Third Party Information
Except where otherwise stated, the disclosure in this press release relating to the Uley Graphite Project and the Saxby
Gold Project is based on information publicly disclosed by QGL and SER respectively, 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 Uley Graphite Project and the Saxby
Gold Project. Although Vox does not have any knowledge that such information may not be accurate, there can be no
assurance that such information from QGL or SER is complete or accurate. Some information publicly reported by
QGL or SER may relate to a larger property than the area covered by Vox’s royalty interest. 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.
Cautionary Note Regarding Forward Looking Information
This news 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, information
relating to the Royalty Transactions including details on the Uley Royalty and the Saxby Royalty, the ability of Vox to
pay the proposed consideration under the Royalty Transactions using cash on hand, the timing of closing of the
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Royalty Transactions and the ability of the Vox management team to continue to focus on and complete acquisitions.
Such statements and information reflect the current view of Vox. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause Vox’s actual results, performance or
achievements or other future events, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include, among others, the following risks:
there is no assurance that the Royalty Transactions will be completed;
there is no assurance that Vox will receive the approval of the TSX Venture Exchange for the Royalty
Transactions
there is no assurance that Vox will be able to continue to successfully negotiate the purchase of royalties;
and
new laws or regulations could adversely affect the Company’s business and results of operations; and
the stock markets have experienced volatility that often has been unrelated to the performance of companies.
These fluctuations may adversely affect the price of the Company’s securities, regardless of its operating
performance.
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.
Not for distribution to United States newswire services or for dissemination in the United States. This press release
does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such
registration is available.
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.
For further information contact:
Spencer Cole
Vox Royalty Corp, Executive Vice President
Deborah Honig
Adelaide Capital, Investor Relations
Kyle Floyd
Vox Royalty Corp, Chief Executive Officer