Vonex scores millions after offloading iron ore royalties

NBN reseller and communications provider Vonex has sold off its last non-core asset for $1.75 million to a Canada-based mining and streaming company.

The telco sold its entitlements to iron ore production royalties derived from the Koolyanobbing Iron Ore project to Silverstream Energy Solutions.

The deal is part of a larger transaction to aid Silverstream’s bid to go public in the Toronto Stock Exchange (TSX) Venture Exchange.

Vonex is also entitled to an additional $750,000 if the iron ore project meets certain milestones.

Vonex managing director Matt Fahey said, “This is a milestone event for the company, disposing of the last non-core asset for cash consideration of up to $2.5 million.”

“These proceeds put Vonex in a very good position, with the ability now to comfortably fund our organic growth of both our direct and recently expanded wholesale business following the completed purchase of 2SG Wholesale.

“We are thrilled for Silverstream and wish them the best of luck with their endeavours.”