The acquisition provides exposure to one of Nevada's most rapidly advancing gold development projects at the pre-feasibility stage South Railroad Project ("South Railroad") that hosts a total resource estimate of 85Mt @ 0.7g/t Au, 4.1g/t Ag for 1.856Moz Au, 5.251Moz Ag(2).
The Royalty covers large portions of the Dark Star, Pinion and Jasperoid Wash deposits at South Railroad as well as portions of the POD and Bald Mountain zones in the North Railroad portion ("North Railroad") of Railroad Pinion.
GSV released an updated Pre-Feasibility Study on the Dark Star and Pinion deposits at South Railroad on March 24, 2020 ("PFS")(1), which envisaged an 8-year open pit, heap leach mine life producing a total of 923Koz, with 146Koz per annum expected to be produced in the first 5 years of operation at an all-in sustaining cost ("AISC") of US$707/ounce and initial capex of US$133M.
GSV is expecting to release a feasibility study on South Railroad by 2021 year-end.
Orion Mine Finance ("Orion"), a global alternative investment management firm with approximately US$6.3 billion under management as of 31 December 2020, has agreed to provide GSV with a term sheet to provide up to US$200 million of financing support to GSV , following the satisfaction of mutually agreed milestones, to help finance the construction of South Railroad.
Vox Management Summary: The South Railroad royalty in Nevada covers approximately 35% of the 1.9Moz resource estimate(2) of a rapidly advancing gold project offering near-term development catalysts (2021 feasibility study completion), immediate annual cashflows to Vox of approximately C$120,000 in advance minimum royalty payments and, in the medium-term, royalty revenue generation potential of approximately C$250,000 – C$750,000 per annum averaged across the life of mine based on the PFS(1).
Vox Royalty rapidly grows its portfolio of low-risk mining assets backed by cash and management experience
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