Cullen Sells 1.5% Wyloo Iron Ore Royalty for A$1.5 Million Cash

• Sale of 1.5% gross revenue Wyloo iron ore royalty for A$1.5 million
• Retention of $900,000 payment upon FMG's decision to commence mining
• Transaction subject to customary conditions precedent by 30 September 2025
• Parent company guarantee provided by Cullen for subsidiary obligations
• Vox Royalty expands its Australian royalty portfolio with this acquisition

Strategic Royalty Sale

Cullen Resources Limited (ASX – CUL) has entered into a binding agreement to sell its Wyloo iron ore royalty to Vox Royalty for a cash consideration of A$1.5 million. The royalty, which entitles Cullen to 1.5% of gross revenue from iron ore production at the Wyloo project, represents a meaningful asset within Cullen’s portfolio of mineral interests in Western Australia.

The sale agreement, formalized through a Royalty Sale and Purchase Agreement (RSPA), is subject to customary conditions precedent and is expected to complete by the end of September 2025. Cullen’s wholly owned subsidiary, Cullen Exploration Pty Ltd, is the vendor, while Vox Royalty Australia Pty Ltd, a subsidiary of the NASDAQ/TSX-listed Vox Royalty Corp., is the purchaser.

Retained Rights and Future Upside

Notably, Cullen retains a valuable contingent right – a $900,000 lump sum payment from FMG Pilbara Pty Ltd upon any decision to commence commercial mining at Wyloo. This provision, originally disclosed in 2015, ensures Cullen maintains exposure to potential future development upside despite the royalty sale.

The Wyloo royalty covers production from several tenements, including E 08/1393 and M 47/1567, among others. FMG Pilbara, the operator, remains the key player in advancing mining activities, and Cullen’s retained payment right hinges on FMG’s commercial mining decisions.

Implications for Cullen and Vox Royalty

For Cullen, the transaction provides immediate liquidity and a streamlined asset base, allowing the company to focus on its broader exploration and development strategy. The parent company guarantee offered by Cullen ensures Vox Royalty is protected against any subsidiary performance risks, underscoring the seriousness of the deal.

For Vox Royalty, this acquisition adds to a growing portfolio of over 60 royalties worldwide, with a strong emphasis on Australian assets. Vox’s diversified approach across commodities and development stages positions it well to capitalize on the iron ore sector’s dynamics.

Looking Ahead

Completion of the sale will mark a significant milestone in Cullen’s portfolio management, while the retained mining commencement payment keeps a door open for future financial gains. Investors will be watching FMG’s development plans closely, as any move toward commercial mining at Wyloo could trigger additional cash inflows for Cullen.

Bottom Line?

Cullen’s royalty sale boosts cash now but keeps a stake in Wyloo’s future mining decisions.

Questions in the middle?

• Will FMG Pilbara proceed with commercial mining at Wyloo soon to trigger Cullen’s $900,000 payment?
• How will Vox Royalty integrate the Wyloo royalty into its broader Australian portfolio strategy?
• What impact will this sale have on Cullen’s exploration funding and project pipeline?