leadf
logo-loader
viewMaverix Metals Inc

Maverix Metals strikes deal with Newmont Corp to acquire royalty portfolio on 11 North American gold assets

The US$90 million deal for 11 gold royalties on a selection of Newmont’s North American assets gives Vancouver-based Maverix an enhanced growth pipeline with near term cash flow

Maverix Metals Inc -
Key assets from the royalty package include a 2% NSR on the Camino Rojo project in Mexico and a 1% NSR royalty on the high-grade Cerro Blanco project in Guatemala

Maverix Metals Inc (NYSE:MMX) (TSE:MMX) inked a deal to acquire a portfolio of gold royalties from mining giant Newmont Corporation, it said Monday.

The US$90 million deal for 11 gold royalties on a selection of Newmont’s North American assets, gives Vancouver-based Maverix an enhanced growth pipeline with near term cash flow, the company said in a statement.

Newmont will also increase its ownership stake in Maverix to around 30% by taking on 12 million additional shares valued at US$5 per share.

READ: Maverix Metals posts record 2Q revenue of US$11 million from its portfolio of precious metals assets

Key assets from the royalty package include a 2% net smelter return (NSR) royalty on the Camino Rojo project in Mexico, which boasts proven and probable reserves of around one million ounces of gold and 20.1 million ounces of silver, as well as a 1% NSR royalty on the high-grade Cerro Blanco project in Guatemala with proven and probable reserves of 3.4 million tonnes at 8.5 g/t gold and 32.2 g/t silver containing 940,000 ounces of gold and 3.6 million ounces of silver.

Additional assets include a sliding scale NSR royalty on the Mother Lode project, a 1% NSR royalty on the Imperial project, a 2% NSR on the Ana Paula project and a 0.5% royalty on the Trenton Canyon and Buffalo Valley projects.

Maverix CEO Dan O’Flaherty told shareholders that the transaction marks “another important milestone” in the firm’s growth trajectory.

“The acquisition of these high-quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets,” O’Flaherty said in a statement. “We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets."

In addition to issuing 12 million shares to Newmont, Maverix will make contingent cash payments of up to US$15 million in tranches of $5 million for each of the Mother Lode, Imperial, and Ana Paula projects if they achieve commercial production within five years of closing the transaction.

Certain royalties in the portfolio are subject to rights of first refusal as well as the requirement for various transfer consents. Any proceeds from the exercise of a right of first refusal will be paid to Maverix.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

Quick facts: Maverix Metals Inc

Price: 7.28 CAD

TSX:MMX
Market: TSX
Market Cap: $932.84 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Maverix Metals Inc named herein, including the promotion by the Company of Maverix Metals Inc in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Maverix Metals enters into agreement to acquire 11 gold royalties from...

Maverix Metals (NYSEAMERICAN: MMX- TSE: MMX) Vice President of Corporate Development Brent Bonney joined Steve Darling from Proactive Vancouver to discuss the company making a deal with Newmont Corporation to acquire a portfolio of 11 gold royalties. Bonney talks about the package that includes...

3 weeks, 4 days ago

2 min read