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Tuesday 04 Feb 2020 , 9:12 am

SilverStream to Acquire a Royalty Over the Producing Koolyanobbing Iron Ore Mine in Western Australia

The royalty applies to tenement M77/1258 which covers a portion of the Deception and Altair deposits, part of the greater Koolyanobbing operation.
By SIN Bureau
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SilverStream SEZC, dba Vox Royalty, announced that it has entered into a preliminary purchase agreement to acquire a 2.0% FOB royalty (the “Royalty”) over a portion of the Deception pit, part of the producing Koolyanobbing Iron Ore mine located within the Yilgarn of Western Australia (“Koolyanobbing”). Koolyanobbing is owned and operated by ASX-listed Mineral Resources Limited (“MinRes”). SilverStream has entered into the agreement to acquire the royalty from ASX-listed Vonex Limited.

The royalty applies to tenement M77/1258 which covers a portion of the Deception and Altair deposits, part of the greater Koolyanobbing operation. MinRes has recently announced plans to increase iron ore production from 7.5Mtpa to 11.5Mtpa across their Yilgarn business units. An initial pre-payment of the royalty in the sum of A$3,000,000 was previously made and as such the royalty will not be payable until this amount has been exhausted.

Kyle Floyd, CEO of Vox Royalty, commented, “The Vox acquisition of the Koolyanobbing royalty from Vonex, represents our first in the iron ore space, and a continued diversification of our existing royalty and streaming portfolio. The Koolyanobbing asset is a large Western Australian iron ore deposit owned by a proven operator and quality counterparty. This acquisition significantly increases the exposure of Vox to producing assets and adds to an exciting portfolio of royalties and streams.”

Matthew Fahey, MD of Vonex, commented, “We are pleased to monetise Vonex's mining royalties through this transaction with SilverStream. This completes our disposal of assets outside our core business and significantly strengthens the Company's balance sheet. As a pure-play telecommunications company with increasingly strong cash flow dynamics, we are excited by the scope this transaction provides to accelerate our growth.”




Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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