Deterra Royalties (ASX: DRR) has agreed the sale of its non-core gold offtake assets, alongside its St Ives and Dandoko gold royalties, for total consideration of US$60 million (approx. A$91 million) to Vox Royalty Corp (NASDAQ/TSX:VOXR) (Vox).
HIGHLIGHTS
- US$56 million sale of gold offtakes to be paid in cash upon completion, delivering a pre-tax return to Deterra since acquisition of US$13.3 million (approx. A$20 million), representing a 25% pre-tax IRR:
- Assets acquired through Trident Royalties Plc (Trident) for US$58.9 million; with total net revenue since acquisition of US$16.3 million.
- US$4 million sale of royalties over the St Ives gold project located in Western Australia and Dandoko gold project located in Mali:
- US$1.5 million to be paid in cash upon completion, with Vox assuming contingent payment obligations of US$2.5 million in relation to Dandoko.
- Completion of each transaction is expected to occur in the coming days following satisfaction of certain conditions precedent. Deterra will continue to recognise revenue and earnings from the assets until completion under each sale agreement.
- This transaction, together with the recent sale of the La Preciosa silver assets, marks the completion of Deterra’s divestment of non-core assets acquired through Trident, generating aggregate consideration of US$82 million (approx. A$124 million). After-tax proceeds from these sales will be used to reduce net debt.
Julian Andrews, Managing Director and Chief Executive Officer of Deterra commented:
“Deterra acquired the portfolio of gold offtakes, along with the Dandoko royalty, as part ofthe acquisition of Trident Royalties in September 2024, while St Ives has been part ofDeterra’s portfolio since listing in 2020.
“Consistent with our strategic investment focus on base, bulk, battery and electrificationcommodities and our disciplined management of capital, we continuously review our portfolio for opportunities from non-core assets.
“We are delighted with the transaction and are particularly pleased with the value generated by the gold Ooftakes since acquisition, having delivered a net return of over US$13 million to Deterra, reflecting a 25% pre-tax IRR.
“The proceeds from the sale of these non-core assets will be used to reduce Deterra’s net debt, providing further balance sheet flexibility as we build a diversified mining royalty portfolio to deliver new revenue streams to complement our cornerstone Mining Area C (MAC) royalty.
“We wish Vox Royalty success as it continues to grow the precious metals portion of its royalty and streaming portfolio.”
