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Maverix Metals completes acquisition of additional royalty on Hope Bay gold mine

Maverix now holds a 2.75% net smelter return royalty on Hope Bay, located in Nunavut, Canada

Maverix Metals Inc - Maverix Metals completes acquisition of additional royalty on Hope Bay gold mine
Hope Bay's operator TMAC hopes the mine will produce over 160,000 ounces of gold in 2019

Maverix Metals Inc (NYSE:MMX) (TSE:MMX) announced Friday that it has completed its acquisition of an additional royalty on the Hope Bay mine in Nunavut, Canada.

Hope Bay owned by TMAC Resources Inc (TSE:TMR), is located on a large greenstone belt in Canada’s north and home to a mineral resource of 4.8 million ounces of gold grading at 8.3 grams per ton in the measured and indicated category.

Vancouver-based Maverix now holds a 2.75% net smelter return (NSR) royalty on Hope Bay, which will reduce to 2.5% upon registration of the royalty against the property.

READ: Maverix Metals lifts its net asset value with increased royalty from Hope Bay gold mine

In a statement, Maverix said that TMAC hopes Hope Bay will produce over 160,000 ounces of gold in 2019.

"Maverix is delighted to expand and support our existing relationship with TMAC through an increase to our interest at their Hope Bay mine," said Dan O'Flaherty, the chief executive at Maverix.

"Hope Bay is a multi-million-ounce camp with tremendous exploration and expansion potential that we expect will operate for decades. This transaction provides both immediate and long-term growth and additional gold exposure for Maverix shareholders."

Maverix previously owned a 1% NSR on Hope Bay gold mine but agreed to acquire a further 1.5% NSR effective August 1 for a cash payment of US$40 million, bringing it up to a combined 2.5% NSR.

Maverix said it drew on an existing credit facility to fund the acquisition.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Price: 5.69 CAD

TSX:MMX
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Full interview: Maverix Metals acquires royalty in Nunavut and sees strong...

Maverix Metals (TSE: MMX-NYSE American: MMX) CFO Matt Fargey joined Steve Darling from Proactive Vancouver to discuss the company picking up another gold royalty. Fargey shares the reason why they liked this property and what the royalty is. Fargey also told Proactive about the companies...

on 21/8/19

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