PERTH: Deterra Royalties announced Monday it has agreed to sell a package of gold offtake contracts and royalty interests to Vox Royalty Corp. for a total of $60 million, marking the completion of its divestment of non-core assets acquired through its takeover of Trident Royalties Plc.
The deal comprises two main parts: the sale of 10 gold offtake contracts for $56 million in cash, and the sale of royalties on the St Ives project in Western Australia and the Dandoko project in Mali for $4 million.
Deterra’s managing director and CEO, Julian Andrews, said the proceeds will be used to reduce net debt, providing “further balance sheet flexibility as we build a diversified mining royalty portfolio.”
The company acquired the gold offtakes as part of its $58.9 million acquisition of Trident Royalties, which was effective Sept. 2, 2024. Since that date, Deterra said it has generated $16.3 million in net revenue from the contracts. The sale price and the revenue generated represent a pre-tax internal rate of return of 25% for Deterra.
The offtake contracts cover 10 mining operations across six operators, including sites in Canada, Brazil, Mexico and South Africa. Deterra will continue to recognize revenue from the assets until the transaction is formally completed in the coming days.
The sale of the gold assets, combined with the recent divestment of the La Preciosa silver assets, brings the total proceeds from non-core Trident assets to $82 million. Deterra’s strategic focus is on bulk, base, and battery metals, with its cornerstone assets being a royalty over BHP’s Mining Area C iron ore mine in Western Australia and the Thacker Pass lithium project in the United States.
Vox Royalty, a competitor focused on precious metals, will assume the assets. The $4 million royalty portion of the deal includes a $1.5 million cash payment upfront, with Vox assuming contingent payment obligations worth $2.5 million related to the Dandoko project.