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.
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