VANCOUVER, BC, June 5, 2020 /CNW/ - Maverix Metals Inc.
(NYSE American & TSX: MMX) (the "Company" or "Maverix") and Pan
American Silver Corp. (NASDAQ & TSX: PAAS) ("Pan American") are
pleased to announce the closing of the previously announced
overnight marketed secondary offering of common shares of Maverix
held by Pan American, including the exercise in full of the
over-allotment option (together, the "Secondary Offering").
Pursuant to the Secondary Offering, Pan American sold 10,350,000
common shares of Maverix at a price of US$4.40 per common share for aggregate gross
proceeds of US$45,540,000.
The Secondary Offering was made pursuant to an underwriting
agreement dated May 29, 2020 (the
"Underwriting Agreement") between Maverix, Pan American and a
syndicate of underwriters co-led by Raymond James Ltd., as sole
bookrunner, and PI Financial Corp., and including National Bank
Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc.,
RBC Dominion Securities Inc., Scotia Capital Inc. and Stifel GMP
(collectively, the "Underwriters"). Pursuant to the Underwriting
Agreement, Pan American paid the Underwriters a cash commission
equal to 4.0% of the gross proceeds of the Secondary Offering.
The Secondary Offering was made by way of a prospectus
supplement dated May 29, 2020 to the
Company's existing U.S. registration statement on Form F-10 and
Canadian short form base shelf prospectus, the latter each dated
September 13, 2019.
As previously announced, Pan American has acquired ownership or
control of an additional 8,250,000 common shares of Maverix through
the exercise of 8,250,000 common share purchase warrants (the
"Warrants"). 5,000,000 Warrants had an exercise price of
US$1.56 and 3,250,000 Warrants had an
exercise price of US$2.408. Maverix
received gross proceeds of approximately US$15.6 million. After the exercise of the
Warrants, Maverix will have 128,009,804 common shares issued and
outstanding on an undiluted basis.
The 10,350,000 common shares of Maverix disposed by Pan American
in the Secondary Offering represented approximately 8.6% of the
issued and outstanding common shares of Maverix on a non-diluted
basis. Immediately following the closing of the Secondary Offering
and the exercise of Warrants, Pan American directly owned
25,483,500 common shares of Maverix, representing approximately
19.9% of the issued and outstanding common shares of Maverix on a
non-diluted basis. Prior to the Secondary Offering and exercise of
the Warrants, Pan American owned 27,583,500 common shares and
8,250,000 Warrants representing approximately 23.03% of the total
number of issued and outstanding common shares on a non-diluted
basis and approximately 27.99% of the common shares on a
partially-diluted basis assuming the exercise of the Warrants. Both
Pan American's disposition pursuant to the Secondary Offering and
its acquisition pursuant to the exercise of the Warrants were made
for investment purposes. Pan American may from time to time and at
any time acquire additional securities or instruments of Maverix in
the open market or otherwise, and reserves the right to dispose of
any or all of such securities in the open market or otherwise at
any time and from time to time, and to engage in similar
transactions with respect to such securities, the whole depending
on market conditions, the business and prospects of Maverix and
other relevant factors. Pan American has agreed, subject to certain
limited exceptions, not to sell any common shares or other
securities of Maverix for a period of 90 days from the closing of
the Secondary Offering.
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 continuing to add new
precious metals royalties and streams. Its shares trade on both the
NYSE American and the Toronto Stock Exchange under the symbol
"MMX".
About Pan American
Pan American owns and operates silver and gold mines located in
Mexico, Peru, Canada,
Argentina and Bolivia. We also own the Escobal mine in
Guatemala that is currently not
operating. As the world's second largest primary silver producer
with the largest silver reserve base globally, we provide enhanced
exposure to silver in addition to a diversified portfolio of gold
producing assets. Pan American has a 25-year history of operating
in Latin America, earning an
industry-leading reputation for corporate social responsibility,
operational excellence and prudent financial management. We are
headquartered in Vancouver, B.C.
and our shares trade on NASDAQ and the Toronto Stock Exchange under
the symbol "PAAS".
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 Pan American Silver
Corp.'s future acquisitions or dispositions of securities of
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: 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; 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
and the mining operations from which Maverix will purchase gold and
other metals or from which it will receive royalty payments,
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, loss
of key employees, as well as those risk factors discussed in the
section entitled "Risk Factors" in Maverix's annual information
form and Form 40-F, each dated March 23,
2020 available at www.sedar.com and www.sec.gov,
respectively. 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 Pan American Silver Corp.