Impact: Mildly Positive
Vox Royalty announced that it has entered into a binding agreement to acquire what is effectively a tonnage royalty on the Brits Vanadium project in South Africa, operated by Bushveld Minerals Ltd. (LSE:BMN, Not Covered). This royalty is expected to start paying in 2021, adding some needed near-term revenue (US$470k/year) and has once again been bought at a discount to where royalty transactions typically occur (at 0.30x NAV). We are encouraged by Vox’s disciplined growth strategy. The ongoing acquisition of overlooked royalties at bargain prices highlight what makes Vox a unique new entrant in the royalty space.