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Maverix Metals set to receive C$50 million from Agnico Eagle Mines for part of its Hope Bay mine royalty

Published: 11:36 02 Feb 2021 EST

Maverix Metals Inc -
Maverix Metals says it will retain a 1% Net Smelter Royalty on the Hope Bay mine in Nunavut, which is not subject to any further reductions

Maverix Metals Inc (TSE:MMX) (NYSEAMERICAN:MMX) (FRA:7781) provided an update on recent developments involving the company’s royalty portfolio, which included the receipt of $50 million from Agnico Eagle Mines Limited for its repurchase of a 1.5% Net Smelter Royalty (NSR) on the Hope Bay mine in Nunavut.

Agnico Eagle Mines completed the acquisition of TMAC Resources Inc, owner of the Hope Bay mine, on February 2, 2021, and gave notice to Maverix that it intends to exercise its royalty buyback right.

Maverix Metals, however, will retain a 1% NSR on the mine, which is not subject to any further reductions.  

“Maverix had another successful year capped off by the acquisition of a portfolio of 10 gold royalties from Newmont in the fourth quarter. The portfolio has already delivered increased value through the positive updates at the Camino Rojo and Cerro Blanco gold projects,” Maverix Metals CEO Dan O'Flaherty said in a statement.

READ: Maverix Metals updates latest development on its Newmont Royalty portfolio

“Additionally, we are tremendously excited about the significant advancements made on several other underlying assets where Maverix has a royalty or stream interest,” he added.

“The company's royalty portfolio continues to benefit from many encouraging developments with further catalysts expected for 2021.”

Maverix Metals noted that intends to use the cash proceeds from the Hope Bay royalty buyback to fully repay its outstanding debt, which is expects will position the company well for future royalty or stream acquisitions.

The company also provided an update on its other project royalties. Most notably, Americas Gold and Silver Corporation achieved commercial production on January 11 at its Relief Canyon mine in Nevada, with full operation ramp up targeted for mid-May 2021.

Maverix has a 2% NSR royalty on a portion of the Relief Canyon mine.

Also, Orla Mining recently provided results from an updated feasibility study for the Camino Rojo oxide gold project in Mexico, which showed a 54% increase in contained gold mineral reserves and an updated mine life of over 10 years.

Maverix has a 2% NSR royalty on the oxide and transitional ore production from Camino Rojo, which covers all the ore included in Orla's updated feasibility study.

And, Bluestone Resources Inc said recently its Cerro Blanco gold project in Guatemala is expected to produce around 113,000 ounces of gold per annum with a mine life of nine years, which is one year longer than envisioned in the feasibility study.  

Maverix Metals has a 1.0% NSR royalty on the Cerro Blanco project.

Contact Sean at sean@proactiveinvestors.com

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