Kinross announces sale of royalty portfolio to Maverix Metals for total consideration of $74 million
December 02 2019 - 8:30AM
Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross”) today
announced that it has entered into an agreement to sell its royalty
portfolio to Maverix Metals Inc. (“Maverix”) for total
consideration of US$74 million, which includes US$25 million in
cash and approximately 11.2 million Maverix common shares,
representing a 9.4% ownership interest in Maverix.
“This agreement realizes the value of our
royalty portfolio today while also providing upside exposure
through a meaningful equity position in Maverix, a company with a
proven track record of growth,” said J. Paul Rollinson, President
and CEO of Kinross Gold.
As part of the transaction, Kinross will enter
into an investor rights agreement with Maverix on closing, which
among other customary terms and conditions, will provide Kinross
with pre-emptive rights to participate in any future equity
financings to maintain its ownership position. The transaction is
targeted to close on or before year-end 2019.
Kinross’ royalty portfolio is comprised of 25
precious metals royalties, including interests in Integra
Resources’ DeLamar project in Idaho, Polymetal’s Omolon Hub
operations in Russia, Barrick Gold and Newmont Goldcorp’s Cerro
Casale project in Chile, Premier Gold Mines’ McCoy Cove project in
Nevada, Agnico Eagle’s Hammond Reef project in Ontario, and a
number of early stage development and exploration projects.
Maverix Metals is a gold-focused, emerging
royalty and streaming company with a globally diversified portfolio
of 80 total assets, of which 13 are operating. Maverix’s shares
trade on the TSX (symbol: MMX) and NYSE American (symbol: MMX).
Paradigm Capital acted as Kinross’ financial
advisor in connection with the transaction.
About Kinross Gold
Corporation
Kinross is a Canadian-based senior gold mining
company with mines and projects in the United States, Brazil,
Russia, Mauritania, Chile and Ghana. Kinross’ focus is on
delivering value based on the core principles of operational
excellence, balance sheet strength, disciplined growth and
responsible mining. Kinross maintains listings on the Toronto Stock
Exchange (symbol:K) and the New York Stock Exchange
(symbol:KGC).
Media Contact Louie DiazSenior
Director, Corporate Communicationsphone: 416-369-6469
louie.diaz@kinross.com
Investor Relations ContactTom
Elliott
Senior Vice-President, Investor Relations and Corporate
Development
phone:
416-365-3390
tom.elliott@kinross.com
Cautionary statement on forward-looking
information
All statements, other than statements of
historical fact, contained in this news release, including any
information as to the future financial or operating performance of
Kinross, constitute “forward-looking information” or
“forward-looking statements” within the meaning of certain
securities laws, including the provisions of the Securities Act
(Ontario) and the “safe harbor” provisions under the United States
Private Securities Litigation Reform Act of 1995 and are based on
the expectations, estimates and projections of management as of the
date of this news release, unless otherwise stated. The words
“targeted” and “upside” or variations of or similar such words and
phrases or statements that certain actions, events or results may,
could, should or will be achieved, received or taken, or will occur
or result and similar such expressions identify forward-looking
statements. Forward-looking statements are, necessarily, based upon
a number of estimates and assumptions that, while considered
reasonable by Kinross as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The estimates and
assumptions of Kinross contained in this news release, which may
prove to be incorrect, include, but are not limited to: (i) that
the parties will complete the transaction in accordance with, and
on the timeline contemplated by, the terms and conditions of the
relevant agreements, on a basis consistent with our expectations;
and (ii) that the near- and long-term value of the Maverix shares
are consistent with our current expectations. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management’s expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by this cautionary statement and
those made in our other filings with the securities regulators of
Canada and the United States including, but not limited to, the
cautionary statements made in the “Risk Analysis” section of our
MD&A for the year ended December 31, 2018 and the Annual
Information Form dated March 29, 2019. These factors are not
intended to represent a complete list of the factors that could
affect Kinross. Kinross disclaims any intention or obligation to
update or revise any forward-looking statements or to explain any
material difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Source: Kinross Gold Corporation
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