Deterra Royalties (ASX:DRR) is selling its non-core gold offtake assets as well as the company’s St Ives and Dandoko gold royalties to Vox Royalty (TSX:VOXR) for US$60 million ($90.91 million).
The sale comprises US$56 million for gold offtakes, with another US$4 to be earned from the royalties earned at the St Ives Project in Western Australia and the Dandoko Project in Mali.
The gold offtakes sale comprises six operators and 10 mining operations across Africa, North America, and South America, after initially acquiring the lot for US$58.9 million.
For the terms outlined in the royalties sale, Vox will be required to pay an initial US$1.5 million upon completion, before the remaining US$2.5 million to be paid in contingent payment obligations.
The Dandoko royalty comprises a 1% net smelter return over material produced and a remaining $2.5 million to be paid to the original vendor, Trident Royalties, spread across the first royalty payment and the payment of 500,000 ounces gold sold.
Deterra currently holds a 3% gross revenue royalty over non-producing tenements at the St Ives Gold Mine.
The company will continue to earn revenue and earnings from the assets until transactions are finalised and completed, which is expected in the coming days.
CEO Julian Andrews explains that St Ives has been sitting in Deterra’s portfolio since first listing in 2020, while the gold offtakes and the Dandoko royalty only came into the company’s hands last year with the acquisition of Trident Royalties.
“Consistent with our strategic investment focus on base, bulk, battery and electrification commodities and our disciplined management of capital, we continuously review our portfolio for opportunities from non-core assets,” Andrews says.
“We are delighted with the transaction and are particularly pleased with the value generated by the gold offtakes since acquisition, having delivered a net return of over US$13 million to Deterra, reflecting a 25% pre-tax internal rate of return.”
Proceeds raised in this sale will allow Deterra to reduce its net debt as the company intends to build a “diversified mining royalty portfolio” that complements the Mining Area C royalty.
This acquisition comes in time as the price of gold hit another record yesterday, reaching US$3,750 ($5,686) per ounce on 23 September, as reported by Mining.com.au.
The gold price has since improved, sitting at US$3,762 today (24 September).
Deterra Royalties is a Perth-based resource royalty company with a portfolio spanning 11 countries and six commodities including two flagship royalties over the Mining Area C in Western Australia and the Thacker Pass Project in Nevada.
The company will be attending this year’s Noosa Mining Investor Conference, held between 12-14 November 2025, at the Peppers Noosa Resort. Mining.com.au is a media partner for this year’s event.
Write to Maddison Elliott at Mining.com.au
Images: Deterra Royalties
