The deal immediately increases Vox's annual revenue forecasts and gives it exposure to a substantial 84.3 million tonne (Mt) Indicated and Inferred (M&I) iron ore resource located in the world's largest iron ore exporting Pilbara region

Vox Royalty (TSX-V:VOX) Corp told investors it expects to report royalty revenues of between C$10 million and C$12 million in 2022—more than double what it realized in 2021—as it also revealed it has acquired a producing royalty on a Western Australian iron ore mine.The royalty, purchased from a private vendor, is a 1.25%-1.50% sliding scale gross revenue royalty (GRR) on the Wonmunna mine operated by major Mineral Resources Ltd (ASX:MIN).Vox is paying US$4.75 million in cash, US$12.15 million in Vox shares and issuing 3.6 million share purchase warrants with an exercise price of C$4.50."The Wonmunna royalty acquisition further expands the revenue and growth profile of Vox and is accretive on all key metrics," said Kyle Floyd, CEO of Vox in a statement."The opportunity to add significant, immediate, incremental revenue through a non-brokered accretive transaction with a private seller generates significant value for Vox shareholders for years to come. 

"We are also excited to increase our exposure to an A$11 billion market cap, best-in-class operator, who we know well as the operator of our producing Koolyanobbing royalty asset," he added.

"We are also pleased to share revenue guidance of C$10M - C$12M for 2022, more than double Vox's 2021 realized revenues, which reflects the ongoing embedded growth in Vox's royalty portfolio."

The deal immediately increases Vox's annual revenue forecasts and gives it exposure to a substantial 84.3 million tonne (Mt) Indicated and Inferred (M&I) iron ore resource located in the world's largest iron ore exporting Pilbara region.

Wonmunna sees the extraction of high-grade iron ore from the three Marra Mamba deposits across multiple shallow open pits. The asset began production in April 2021 and is currently producing at a rate of around 5 million tonnes per annum (Mtpa) of iron ore, with all approvals received to expand production up to 10 Mtpa.

Notwithstanding the closing date of the transaction, all royalty payments due and payable to the holder of the royalty will be for the benefit of Vox as of April 1 this year, noted the company.

The Wonmunna mine consists of four deposits, NMM, Central Marra Mamba (CMM), South Marra Mamba (SMM) and East Marra Mamba (EMM) and the mining leases are contained within the exploration licence, which covers around 230 square kilometres (sq km).

Established in 2014, Vox is a precious metals royalty company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. Since the beginning of 2020, the firm has announced over 20 separate transactions to acquire over 45 royalties.