All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Sept. 29,
2022 /CNW/ - Maverix Metals Inc. ("Maverix" or the
"Company") (NYSE American: MMX) (TSX: MMX) is pleased to
announce that it has completed the acquisition of a portfolio of 22
royalties (the "Royalty Portfolio") from Barrick Gold Corporation
("Barrick").
As consideration for the transaction, Maverix agreed to total
upfront cash consideration of $50
million, subject to the exercise of any right of first
refusal or buy-down rights under certain of the royalties, and
contingent consideration of up to $10
million. On September 26,
2022, Skeena Resources Ltd. ("Skeena") announced that it
exercised its right to repurchase 0.5% of the 1.0% net smelter
return ("NSR") royalty on the Eskay Creek project from Barrick for
a payment of C$17.5 million. The
remaining 0.5% NSR royalty is not subject to any further
reductions. As a result of Skeena's exercise of its repurchase
right, Maverix's upfront cash payment to Barrick was reduced from
$50 million to $37.2 million on closing. Maverix used existing
cash on hand and its revolving credit facility to fund the cash
payment.
Certain royalties in the Royalty Portfolio remain subject to
conditions to transfer and Maverix will acquire title to such
royalties at later dates.
Royalty Portfolio
|
Asset
|
Operator
|
Location
|
Stage
|
Royalty
|
|
Eskay Creek
|
Skeena
Resources
|
Canada
|
Development
|
0.5% NSR
|
|
Bullfrog
Gold
|
Augusta Gold
|
USA
|
Development
|
2.0% NSR
(1)
|
|
Lagunas
Norte
|
Boroo Pte
|
Peru
|
Development
|
2.0% NSR
(2)
|
|
Sanutura (South
Houndé)
|
Sarama
Resources
|
Burkina Faso
|
Development
|
1.0% - 2.0% NSRs
(3)
|
|
Central Musgrave
|
NiCo
Resources
|
Australia
|
Exploration
|
1.5% NSR
|
|
Maitland
|
Dakota Gold
|
USA
|
Exploration
|
2.5% NSR
|
|
Cose
|
Pan American
Silver
|
Argentina
|
Operating
|
2.5% NSR
|
|
Euro
(Laverton)
|
Focus
Minerals
|
Australia
|
Development
|
55.18% of $10/oz
(4)
|
|
Bulletin
(Bardoc)
|
St Barbara
|
Australia
|
Development
|
66.7% of A$2.00/t gold
ore
|
|
Ethiunda
(Honeymoon)
|
Boss Energy
|
Australia
|
Development
|
1.5% – 3.5% NSR
(5)
|
|
Hopewell
(Kokomo/Sconi)
|
Australian
Mines
|
Australia
|
Development
|
A$1.00 – $2.00/t
ore (6)
|
|
Colosseum
|
Dateline
Resources
|
USA
|
Exploration
|
2.5% NSR
|
|
Biddy Well
|
Northern Star
Resources
|
Australia
|
Exploration
|
1.0% NSR
|
|
Camelback
Bore
|
Glencore
|
Australia
|
Exploration
|
A$0.20/t of Ni laterite
ore (7)
|
|
Eva Cobar (Coronation
Hill)
|
UAU Pty
|
Australia
|
Exploration
|
45% of 2.0% NSR
(8)
|
|
Lone Star (Giants
Reef)
|
Emmerson
Resources
|
Australia
|
Exploration
|
1.0% NSR
(9)
|
|
Musgrave
|
Power
Minerals
|
Australia
|
Exploration
|
1.5% NSR
|
|
Orban
|
Evolution
Mining
|
Australia
|
Exploration
|
20% – 25% NPI
or
$0.50 – $1.25/t
ore (10)
|
|
Nipisi Area
|
Canadian Natural
Resources
|
Canada
|
Exploration
|
1.0% – 2.5% GORR
(11)
|
|
El Toqui
|
Laguna Gold
|
Chile
|
Idle
|
2.0% NSR
(12)
|
|
Sunrise
|
AngloGold
Ashanti
|
Australia
|
Idle
|
Variable $/oz
(13)
|
|
|
|
(1) The 2.0%
royalty rate is subject to change such that the maximum aggregate
royalty on any individual mining claim shall not exceed 5.5% but
shall be a minimum 0.5% on any individual mining claim.
|
|
(2) The 2.0% NSR
royalty is on the refractory sulphide ore project ("PMR") of the
Lagunas Norte mine. The royalty terminates after one million ounces
of gold has been sold from the PMR and Boroo has the right to buy
back the royalty for a cash payment of $16 million before July 1,
2023.
|
|
(3) A pair of 1.0%
- 2.0% NSR royalties on the Tankoro deposit of the Sanutura
project. The royalty rate for each royalty is 2.0% when the
realized gold price is greater than $1,500 per ounce, 1.5% when the
realized gold price is between $1,300 per ounce and $1,500 per
ounce, and 1.0% when the realized gold price is less than $1,300
per ounce. Each of the royalties terminates after one million
ounces of gold has been sold from the applicable covered
areas.
|
|
(4) Royalty takes
effect after the first 50,000 gold ounces have been
recovered.
|
|
(5) Royalty is
1.5% on tertiary uranium, 3.5% on hard rock uranium and 2.5% on all
other minerals.
|
|
(6) Royalty is
A$1.00/t on the first 1.0 million tonnes, A$1.50/t on the next 2.0
million tonnes and A$2.00/t thereafter. Cash payment of A$50,000
per annum to payee during the lease term.
|
|
(7) Royalty is
capped at 1,750 kt of nickel laterite ore.
|
|
(8) Payees are
entitled to A$0.20/kg U3O8 (or equivalent)
payment on discovery of an indicated mineral resource.
|
|
(9) Royalty is
capped at A$825,000 in cumulative royalty payments.
|
|
(10) Royalty is
the greater of (i) 25% net profits interest ("NPI") up to 20,000
ounces of gold, 20% NPI thereafter and (ii) A$0.50/t ore (<1 g/t
gold) or A$1.25/t ore (>2 g/t gold).
|
|
(11) Royalty is
1.5% on the first 15,000 Bbl/day and 2.5% on the second 15,000
Bbl/day subject to a cap at 30,000 Bbl/day.
|
|
(12) Royalty does
not include lead or zinc.
|
|
(13) Royalty
varies based on gold price and sliding scale rate.
|
About Maverix
Maverix is a gold-focused royalty and streaming company with a
globally diversified portfolio of over 140 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 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, Maverix's obligation to make contingent
payments to Barrick in respect of the occurrence of future events,
the rights of certain of the operators of royalties which
constitute part of the Royalty Portfolio to repurchase all or a
portion of certain such royalties, authorizations and approvals
affecting certain royalties in the Royalty Portfolio, the
requirements for regulatory approvals and third party consents in
connection with the transaction, the Company's annual guidance and
or organic growth in respect of its portfolio of assets,
developments in respect of Maverix's portfolio of royalties and
streams, and as well developments at certain of the mines, projects
or properties that underlie the Company's interests.
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:
the 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 or 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 16,
2022, available at 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.
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SOURCE Maverix Metals Inc.