All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Oct. 18, 2021 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (NYSE American: MMX) (TSX: MMX) is pleased
to announce it has reached an agreement with Omolon Gold Mining
Company LLC, a wholly owned subsidiary of Polymetal International
plc ("Polymetal") to increase and expand Maverix's royalty interest
in the Omolon hub operation located in Magadan Region, Russia.
Dan O'Flaherty, CEO of Maverix,
commented, "Maverix acquired its original 2% partial royalty
interest in Omolon through the acquisition of a royalty portfolio
from Kinross in 2019 and we are
pleased to increase this to 2.5% and expand the coverage across all
Omolon hub licenses, which cover over 60,000 hectares. Omolon has a
long and continuous history of gold and silver production and we
look forward to our strengthened relationship with Polymetal as
they continue to operate and extend the mine life at Omolon. This
transaction is expected to increase Omolon's annual contribution to
Maverix's attributable gold equivalent ounces from approximately
2,000 ounces to approximately 5,000 ounces. Additionally, the
expanded area of royalty coverage provides Maverix with exposure to
several new promising projects and exceptional exploration
potential at Omolon."
Transaction Summary
Maverix will make a cash payment equal to $23.5 million to increase its effective interest
to a 2.5% gross revenue royalty and expand the royalty coverage to
include all 13 licenses that currently comprise the Omolon hub and
potentially an additional three that are in the application phase.
Prior to this transaction, Maverix's 2% gross revenue royalty
covered two licenses (Tsokol Kubaka and Birkachan).
Upon sales of one million gold equivalent ounces at Omolon, post
completion of the transaction, the effective interest will decrease
from 2.5% to 2.0%, and upon sales of 1.2 million gold equivalent
ounces, Maverix will make an additional $1.5
million cash payment.
The purchase price will be funded from Maverix's existing cash
on hand.
Omolon
The Omolon hub has produced over 4 million ounces of gold and 21
million ounces of silver since 1996. The operation is comprised of
the Kubaka processing plant, a mix of open pit and underground
mines as well as several near-mine development projects with
high-grade open-pittable reserves and resources and significant
longer-term exploration potential. All parts of the hub are centred
around the 850,000 tonne per annum Kubaka plant, which serves as
the processing facility for the operating mines in the area and
future near-mine feedstock. In addition, Polymetal operates a one
million tonne per annum seasonal heap leaching circuit at the
Birkachan mine. Polymetal is currently commissioning a new 2.5 MWh
solar power plant at Omolon and is expected to complete the
construction of a dry tailings storage facility by the end of
2021.
In 2020, Omolon produced 210,000 gold equivalent ounces at an
all-in sustaining cost of $773 per
gold equivalent ounce.(1)
As of January 1, 2021, Omolon has
proven and probable reserves of 4.2 million tonnes at 4.3 grams per
tonne ("g/t") gold and 13 g/t silver containing approximately 0.6
million ounces of gold and 1.8 million ounces of silver. In
addition to the mineral reserves, Omolon has measured and indicated
resources of 1.9 million tonnes at 5.4 g/t gold and 124 g/t silver
containing approximately 0.3 million ounces of gold and 7.6 million
ounces of silver and inferred resources of 0.3 million tonnes at
11.5 g/t gold and 117 g/t silver containing approximately 0.1
million ounces of gold and 1.1 million ounces of
silver.(1)
For more information on Omolon please visit
polymetalinternational.com.
(1) Polymetal 2020 Annual Report.
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, the closing of the transaction, the making of
an additional cash payment, the step-down in applicable royalty
percentage, anticipated future cash flows, and future financial
reporting by Maverix. 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,
2021 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.