VANCOUVER, BC , Sept. 3,
2020 /CNW/ - Maverix Metals Inc. (the "Company" or
"Maverix") (NYSE American: MMX) (TSX: MMX) is pleased to announce
the closing of the previously announced transaction with Karora
Resources Inc. ("Karora") to reduce the gold royalty on the Beta
Hunt mine from 7.5% to 4.75% effective July
1, 2020 (the "Transaction"). The Transaction will allow both
Maverix and Karora shareholders to benefit from a renewed focus on
exploration, development and potential future production growth at
the Beta Hunt mine. As consideration for the Transaction, Maverix
will receive total consideration of US$18
million in cash, with US$15.5
million received on closing and an additional US$2.5 million to be paid in January 2021. The Company plans to use the
proceeds to reduce the amount drawn under its revolving credit
facility.
Dan O'Flaherty, CEO of Maverix,
commented, "Maverix is pleased to support Karora as it continues to
unlock Beta Hunt's potential. We remain focused on growing our
asset portfolio by pursuing opportunities to acquire high quality
royalties and streams, creating further per share value for our
shareholders."
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
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
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", "measured mineral
resource", "indicated 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", "measured mineral
resource", "indicated 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 or
in the documents incorporated by reference herein 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, statements with respect to the future
performance of the Beta Hunt mine, the future payment of
consideration due under the transaction with Karora and the
reduction of amounts drawn under Maverix's revolving credit
facility. 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 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.