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DENVER - Vox Royalty Corp. (TSX:VOXR)(NASDAQ:VOXR), a mining royalty company with a market capitalization of $180.62 million, is facing a legal challenge in the Supreme Court of Western Australia. The company, which has demonstrated strong financial health according to InvestingPro metrics, has seen its stock surge over 60% in the past year. The company’s subsidiary, Vox Royalty Australia Pty Ltd ("Vox Australia"), has been named as a second defendant in a lawsuit concerning the assignment of the Red Hill royalty.
According to the Writ of Summons and Statement of Claim received, the plaintiff is contesting the transfer of the Red Hill royalty to Vox Australia, which occurred in September 2023. The plaintiff asserts that they had a right of first refusal on the royalty, which they allege was breached by the first defendant. The plaintiff is seeking either a declaratory relief or damages as a remedy. Despite the legal challenge, the company maintains a strong liquidity position with a current ratio of 4.24, indicating robust ability to meet short-term obligations.
Vox Australia acquired the Red Hill royalty as a component of a larger transaction involving nine royalties from the first defendant. The deal, valued at A$6,750,000, included a combination of cash and non-cash considerations, with Vox providing ongoing royalty-related services to the first defendant.
Vox has taken a firm stance on the matter, maintaining that the claimed right of first refusal was not applicable under the circumstances. The company has indicated its intention to defend itself vigorously against the claims.
The Denver-based Vox Royalty Corp., established in 2014, has a portfolio encompassing over 60 royalties across six jurisdictions. The company has completed more than 30 transactions to acquire over 65 royalties since early 2020, focusing on high-return royalty acquisitions in the mining sector.
The information regarding the legal action is based on a press release statement, and Vox Royalty Corp. has not provided further details on the potential financial impact or the timeline for resolving the dispute. Investors and interested parties are advised to follow official announcements for updates on the proceedings.
In other recent news, Vox Royalty Corp. announced its upcoming inclusion in the Russell 3000®, Russell 2000®, and Russell Microcap® Indexes, a development expected to enhance its visibility among institutional investors. This milestone follows the annual reconstitution of these indexes, which include the largest U.S. stocks by market capitalization. Furthermore, Vox Royalty provided an update on its Red Hill gold project in Western Australia, highlighting significant exploration progress and resource growth. Northern Star Resources Limited, Vox’s operating partner, reported an increase in the resource estimate for the Kalgoorlie Operations, with plans to expand processing capacity.
Additionally, BMO Capital Markets raised its price target for Vox Royalty to $4.00, maintaining an Outperform rating. This update comes after Vox’s acquisition of the Kanmantoo Net Smelter Return royalty, which led to an upward revision of its revenue guidance for 2025. The acquisition is expected to provide immediate cash flow benefits. Moreover, Vox reported that its partners in Western Australia have made strides in their mining operations, including the first gold pour at Black Cat Syndicate’s Lakewood mill and the commencement of mining at Evolution Mining’s Castle Hill deposit. These developments are anticipated to bolster Vox’s royalty revenue in the near and medium term.
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