Mike Fagan's Precious Portfolio: Special Alert No. 8: Tier-3 Portfolio Addition

Jan. 5, 2021 Mike Fagan's Precious Portfolio

Alert No. 8
January 5, 2021

Special Alert: Tier-3 Portfolio Addition

Dear Precious Portfolio subscriber,

In today’s alert, we’re announcing a new portfolio addition from Tier-3 (Juniors).

Precious Portfolio Alert #8:

Tier-3: Vox Royalty Corp. (OTC: VOXCF)(TSX-V: VOX)

Tier-3: Vox Royalty Corp. (OTC: VOXCF)(TSX-V: VOX)

Vox Royalty Corporation is a newly-listed, small-cap precious metals royalty and streaming company with a portfolio of over 45 royalties and streams spanning 8 jurisdictions.

The royalty and streaming model offers a number of key advantages including:

Leverage to commodity prices
Fixed operating & cash costs and strong margins
Exploration & mine expansion upside
No capex or cost overrun exposure
No limit to growth as execution of risk does not rise with each acquisition

Founded in 2014, Vox Royalty Corporation represents an early-stage opportunity to participate in the fastest growing royalty company in the world. Vox has conducted 18 transactions to acquire more than 40 royalties since 2019. And, just since July 2020, Vox has acquired 10 royalties representing over 10 million gold equivalent resource ounces.

The company currently has 5 production-stage royalties and expects to have a minimum of 8 production-stage royalties by the end of 2021. In addition to precious metals [~70% of the company’s current royalties], Vox has exposure to a diverse set of underlying assets including base metals and diamond royalties.

At present, there are over 120,000 meters being drilled across the company’s royalty portfolio [for which the company incurs zero costs] – and approximately 75% of the company’s royalty assets are located in mining-friendly and geopolitically-safe Australia.

Closing out 2020 in impressive fashion, Vox cut a deal for a suite of royalties on up to 8 precious and base metals projects from Breakwater Resources and completed the acquisition of a vanadium royalty from Sable Metals & Minerals covering a portion of Bushveld’s Brits vanadium project — South Africa.

In terms of the Brits royalty block, mining could start there within a year or so, and the currently defined resource could last for 20-plus years based on the expected ramped up mining rate for the deposit.

Vox founder & CEO, Kyle Floyd, commented via press release:

“The completion of the Brits transaction and this exciting operating partner news flow rounds out a truly transformational 2020 year for Vox and promises a catalyst-rich 2021 year. This year we announced the acquisition of over 30 new royalties, increased our producing royalty count and noted over 120,000 metres of partner-funded drilling on our royalty properties. We are very grateful to our 42 operating partners for their efforts during a dynamic 2020.”

The Breakwater royalty package covers precious and base metal projects in Canada and the United States. Operating partners on these projects include Agnico Eagle, Alamos Gold, Hecla Mining, and Galway Metals.

The acquisition [which will total ~C$980,000] will consist of ~C$455,000 in cash and C$525,000 of Vox shares.

The package includes projects with 5 resource estimates and multiple engineering studies. Key additions will include a 2.0% gross proceeds royalty on the Lynn Lake gold project in Manitoba, a 0.66% NSR on Agnico’s West Malartic project in Quebec, and a US$0.20/ton royalty on Hecla’s Montanore silver-copper project in Montana.

Already with 45 royalties in its impressive portfolio, Vox expects to continue to close highly accretive royalty transactions in 2021 and beyond; Vox currently has access to over 7,000 existing royalties via its proprietary database.

The company expects to also benefit from organic newsflow from its forty-plus operating partners, which account for a combined ~30,000 meters of drilling each quarter.

Independent analyst firm Red Cloud Financial Services recently initiated coverage on Vox Royalty with a “Buy” rating and C$4.75 price target; VOX is currently trading at approximately C$2.88 per share.

And while Vox has yet to announce formal guidance, analyst estimates are presently coming in right around C$2 million in revenues for 2021, C$6 million for 2022, and C$8 million for 2023. Vox Royalty CEO, Kyle Floyd, believes the company will be able to exceed those projections both from an organic standpoint and by way of acquisitions currently under evaluation in the pipeline.

Vox Royalty Corp. has approximately 32.6 million shares outstanding for a current market cap of C$94 million, and the company is well-funded with approximately C$6 million in cash and no outstanding debt.

Current price: US$2.25 per VOXCF share: Buy up to US$2.30

Establish your Vox Royalty (OTC: VOXCF)(TSX-V: VOX) position incrementally and look for opportunities to buy additional shares on weakness. Learn more about Vox Royalty Corporation at www.VoxRoyalty.com.

Yours In Profits,

Mike Fagan
Editor, Precious Portfolio

Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest, Hard Asset Digest, and Mike Fagan's Precious Portfolio readers.

Previous Alerts