Vox Royalty Corp., a returns-focused mining royalty company, has executed a binding agreement to acquire an iron ore royalty over Wyloo North project in the Pilbara region of Western Australia, currently operated by Fortescue Metals Group, from an Australian company for A$1.5 million.
The royalty is a 1.5% Gross Revenue Royalty payable on the first 15 million tonnes of iron ore production from the Wyloo North deposit, which forms part of Fortescue’s Greater Western Hub.
“We are pleased to announce the Wyloo North royalty acquisition in Western Australia, which aligns with Vox’s focus on large high-grade orebodies, operated by large-cap mining companies with medium-term development potential via existing infrastructure,” said Spencer Cole, chief investment officer of Vox Royalty.
“The Wyloo North royalty is expected to generate meaningful returns once it enters production. Vox management is confident that the deposit has the potential to be fast-tracked towards production by the A$60 billion market cap operator Fortescue.”
The Wyloo North iron ore deposit is a large 7 kilometre-long satellite orebody located within 30 km of the producing Eliwana iron ore operation, which currently produces 30 million tonnes per annum of iron ore.
Source: Vox Royalty