VANCOUVER, BC, Feb. 2, 2021 /PRNewswire/ - Maverix Metals Inc.
(the "Company" or "Maverix") (NYSE American: MMX) (TSX: MMX) is
pleased to provide an update on recent developments from the
Company's royalty portfolio.
Dan O'Flaherty, CEO of Maverix,
commented "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. Additionally, we are tremendously excited about the
significant advancements made on several other underlying assets
where Maverix has a royalty or stream interest. The Company's
royalty portfolio continues to benefit from many encouraging
developments with further catalysts expected for 2021."
Hope Bay
On February 2, 2021, Agnico Eagle
Mines Limited ("Agnico") completed the acquisition of TMAC
Resources Inc., the owner of the Hope Bay mine in Nunavut, Canada. Agnico has provided notice to
the Company that it intends to exercise the buyback right with
respect to 1.5% of the total 2.5% NSR royalty that the Company
currently owns on Hope Bay for a cash payment of $50 million.
Maverix will retain a 1% NSR royalty, which is not subject to
any further reductions, on the Hope Bay mine and along its 80
kilometre Archean greenstone belt. Agnico is expected to continue
operating Hope Bay while it ramps up exploration efforts at both
the mine and regionally. Maverix looks forward to having Agnico as
an operating partner at Hope Bay given its expertise in
Nunavut and capability to maximize
the value of the mine.
Maverix intends to use the cash proceeds from the exercise of
the buyback to fully repay its outstanding debt and will be well
positioned for future royalty or stream acquisitions.
For more information, please refer to www.tmacresources.com and
see the news release dated February 2,
2021.
Camino Rojo (2% NSR)
On January 11, 2021, Orla Mining
Ltd. ("Orla") announced the results of an updated feasibility study
for the Camino Rojo oxide gold project after the recently completed
layback agreement with Fresnillo plc. The updated feasibility study
highlights a 54% increase in contained gold mineral reserves and an
updated mine life of over 10 years with an average gold production
rate of 94,000 ounces per annum. The mine is currently in
construction with first production planned for late 2021. 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.
For more information, please refer to www.orlamining.com and see
the news release dated January 11,
2021.
Beta Hunt (4.75% Gold GRR/NSR + 1.5% Nickel NSR)
On December 16, 2020, Karora
Resources Inc. ("Karora") announced an updated mineral resource and
reserve estimate for Beta Hunt. Gold reserves increased by 176,000
ounces and measured and indicated resources increased by 111,000
ounces, increases of 57% and 12%, respectively, over the
November 2019 estimates. Karora
continues to aggressively explore Beta Hunt and in 2020 was focused
on infill and extensional drilling of the A Zone and Western
Flanks. The updated mineral resource does not include the recently
discovered high grade Larkin Zone
discovered south of the Alpha Isla Fault, which requires further
drilling and is expected to be included in the 2021 update. Karora
also announced an updated nickel measured and indicated resource at
Beta Hunt, the first since 2016, of 16,100 tonnes of nickel at a
grade of 2.9%. Maverix has a 4.75% royalty on gold production and a
1.5% NSR royalty on nickel production at Beta Hunt.
For more information, please refer to www.karoraresources.com
and see the news release dated December 16,
2020.
Moss (100% Silver Stream)
On December 7, 2020, Northern
Vertex Mining Corp. ("Northern Vertex") announced a business
combination with Eclipse Gold Mining Corp. and a concurrent
C$20 million equity financing. The
financing closed on January 14, 2021
and the business combination is expected to close on or around
February 12, 2021. Northern Vertex is
currently undertaking a 13,700 metre Phase II infill drilling and
resource expansion program and an updated mineral resource estimate
is expected in 2021. A key priority is delineating the East/West
strike length of the Ruth Vein, which is located adjacent to the
Moss open pit, and has been mapped for over 2 kilometres on
surface. Maverix has a stream agreement to purchase 100% of the
payable silver produced at Moss at an ongoing price equal to 20% of
the spot price of silver.
For more information, please refer to www.northernvertex.com and
see the news releases dated January 14,
2021, December 7, 2020 and
November 3, 2020.
Morondo (2% NSR)
On January 28, 2021, Montage Gold
Corp. ("Montage") announced an updated mineral resource at its
Morondo gold project in Cote
d'Ivoire. The inferred mineral resource at the Kone deposit
was increased significantly to 3.2 million ounces of gold at a
grade of 0.80 grams per tonne. A 35,000 metre drill program is
currently underway targeting further growth in resources and infill
drilling. Montage expects to release a preliminary economic
assessment in early April 2021 and a
feasibility study before the end of 2021. Maverix has a 2% NSR
royalty on the Morondo project.
For more information, please refer to www.montagegoldcorp.com
and see the news release dated January 28,
2021.
Cerro Blanco (1% NSR)
On January 26, 2021, Bluestone
Resources Inc. ("Bluestone") provided an update on its Cerro Blanco
gold project in Guatemala. During
2020, a project readiness update ("PRU") was undertaken which
involved a review of the current mine plan, engineering, process
flow sheet, capital and operating cost estimates, along with the
execution strategy. The mine is expected to produce approximately
113,000 oz of gold per annum with a mine life of 9 years, which is
one year longer than envisioned in the feasibility study. The PRU
will be further optimized in the first half of 2021 following the
completion of an updated mineral resource estimate and mine plan to
incorporate the recently completed 2020 drill program. In addition,
Bluestone continues to advance project financing for Cerro Blanco
with the completion of independent technical engineering,
environmental, and social reports along with advancements to
long-form term sheets in 2020. Bluestone has indicated that further
corporate and project finance updates will be provided in Q1.
Maverix has a 1.0% NSR royalty on the Cerro Blanco project.
For more information, please refer to www.bluestoneresources.ca
and see the news release dated January 26,
2021.
McCoy-Cove (1.5-3.5% NSR)
On December 16, 2020, Premier Gold
Mines Limited ("Premier") announced that they have entered into a
definitive agreement whereby Equinox Gold Corp. will acquire all
outstanding shares of Premier. Concurrently, Premier will spin-out
to its shareholders shares of a newly created US-focused gold
production and development company called i-80 Gold Corp., which
will include the McCoy-Cove project in Nevada, USA as a core asset. On January 18, 2021, Premier announced an updated
preliminary economic assessment ("PEA") for McCoy-Cove which
outlined an 8-year mine life producing an average of 102,000 ounces
of gold per annum. The PEA assumes mining of mineral resources in
the Helen and Gap deposits only and potential exists to increase
mineral resources as both the deposits remain open for expansion.
The focus for the remainder of 2021 and 2022 includes laboratory
and economic evaluations of alternative processing methods,
optimizing the mine plan with the hydrological model, completion of
baseline studies needed to commence an EIS, and beginning
development of an exploration decline to support underground
diamond drilling to upgrade and increase mineral resources.
Completion of these activities and a feasibility study is expected
to occur in 2023 – 2024. Maverix has a 1.5% NSR royalty that covers
the entire McCoy-Cove property and an additional 2% NSR royalty
that covers a portion of the McCoy-Cove property.
For more information, please refer to www.premiergoldmines.com
and see the news releases dated December 16,
2020 and January 18, 2021.
Relief Canyon (2% NSR)
On January 11, 2021, Americas Gold
and Silver Corporation announced that commercial production was
achieved at its Relief Canyon mine in Nevada, USA, and that full ramp up from the
operation is targeted for mid-May
2021. Maverix has a 2% NSR royalty on a portion of the
Relief Canyon mine.
For more information, please refer to www.americas-gold.com and
see the news release dated January 11,
2021.
Qualified Person
Brendan Pidcock, P.Eng., is Vice
President Technical Services for Maverix, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this news release.
About Maverix
Maverix is a gold-focused royalty and streaming company with a
globally diversified portfolio of over 100 assets. Maverix's
mission is to increase per share value by acquiring precious metals
royalties and streams. Its shares trade on both the NYSE American
and the TSX under the symbol "MMX".
Cautionary statements to U.S. investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Maverix has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of US
securities laws. The terms "mineral resource" and "inferred mineral
resource" used in this press release or in the documents
incorporated by reference herein are mining terms as defined in
accordance with NI 43-101 under guidelines set out in the
Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council on 11 December
2005. While the terms "mineral resource", and "inferred
mineral resource" are recognized and required by Canadian
securities laws, they are not recognized by SEC standards and
normally are not permitted to be used in reports filed with the
SEC. Investors are cautioned not to assume that all or any part of
the disclosed mineral resource estimates will ever be confirmed or
converted into reserves that meet the definitions used by the
SEC. Disclosure of contained ounces are or may be
permitted disclosure under regulations applicable to Maverix;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit of
production measures. Accordingly, certain information contained in
this press release concerning descriptions of mineralization and
mineral resources under these standards may not be comparable to
similar information made public by US companies subject to
reporting and disclosure requirements of the SEC.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, receipt of the proceeds of the exercise of the
buyback right in respect of Maverix's NSR royalty on the Hope Bay
mine, completion of certain anticipated milestones, transactions
and developments by the operators of certain underlying projects
and mines in respect of Maverix's royalty and stream portfolio,
anticipated future cash flows, future financial reporting by
Maverix, the receipt of payments from Maverix's mining royalty and
streaming portfolio, the requirements for regulatory approvals and
third party consents, and the completion of mine expansion under
construction phases at the mines or properties that Maverix holds
an interests in. Forward-looking statements and information are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual actions,
events or results to be materially different from those expressed
or implied by such forward-looking information, including but not
limited to: impact of general business and economic conditions; the
absence of control over mining operations from which Maverix will
purchase gold and other metals or from which it will receive
royalty payments and risks related to those mining operations,
including risks related to international operations, government and
environmental regulation, delays in mine construction and
operations, actual results of mining and current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations; problems
inherent to the marketability of gold and other metals; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; industry conditions,
including fluctuations in the price of the primary commodities
mined at such operations, fluctuations in foreign exchange rates
and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Maverix; stock market
volatility; regulatory restrictions; liability, competition, the
potential impact of epidemics, pandemics and other public health
crises, including the current outbreak of the novel coronavirus
known as COVID-19 on Maverix's business, operations and financial
condition, loss of key employees, as well as those risk factors
discussed in the section entitled "Risk Factors" in Maverix's
annual information form dated March 23,
2020 available at www.sedar.com. Maverix has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers are advised not to place
undue reliance on forward-looking statements or information.
Maverix undertakes no obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents management's best judgment
based on information currently available.
Technical and third-party information
The disclosure herein and relating to properties and operations
on the properties in which Maverix holds royalty, stream or other
interests is based on information publicly disclosed by the owners
or operators of these properties and information/data available in
the public domain as at the date hereof, and none of this
information has been independently verified by Maverix.
Specifically, as a royalty or stream holder, Maverix has limited,
if any, access to properties included in its asset portfolio.
Additionally, Maverix may from time to time receive operating
information from the owners and operators of the properties, which
it is not permitted to disclose to the public. Maverix is dependent
on, (i) the operators of the properties and their qualified persons
to provide information to Maverix, or (ii) on publicly available
information to prepare disclosure pertaining to properties and
operations on the properties on which Maverix holds royalty, stream
or other interests, and generally has limited or no ability to
independently verify such information. Although Maverix does not
have any knowledge that such information may not be accurate, there
can be no assurance that such third-party information is complete
or accurate. Some information publicly reported by operators may
relate to a larger property than the area covered by Maverix's
royalty, stream or other interest. Maverix's royalty, stream or
other interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
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SOURCE Maverix Metals Inc.