All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Sept. 1,
2022 /CNW/ - Maverix Metals Inc. ("Maverix" or the
"Company") (NYSE American: MMX) (TSX: MMX) is pleased to announce
that it has acquired a portfolio of 22 royalties (the "Royalty
Portfolio") from Barrick Gold Corp. ("Barrick") for upfront cash
consideration of $50 million and
contingent consideration of up to $10
million depending on certain events occurring (the
"Transaction").
The Royalty Portfolio includes royalties on development,
advanced exploration and exploration stage projects located
predominantly in Canada,
the United States, and
Australia. The portfolio comprises
multiple assets that contain multi-million gold equivalent ounces
of reserves and resources, highlighted by a 1.0% royalty on Skeena
Resources' Eskay Creek gold-silver project in the prolific Golden
Triangle of British Columbia. The
Eskay Creek project is currently undergoing a feasibility study
that is expected to be completed in the third quarter of 2022.
Dan O'Flaherty, CEO of Maverix,
commented, "This transaction marks another important milestone in
our continued growth at Maverix. We are pleased to add Barrick
alongside Newmont, Pan American Silver, Kinross and Gold Fields, to the list of
reputable counterparties from which we have acquired royalty
portfolios. This portfolio boasts significant existing attributable
mineral inventory with meaningful exploration potential in historic
mining geographies. The acquisition increases our portfolio to a
total of 147 royalties and streams and enhances our already robust
exposure to the next generation of gold mines."
Key Royalties
Eskay Creek Royalty
A 1.0% net smelter return ("NSR") royalty on the Eskay Creek
project, located in British
Columbia, operated by Skeena Resources Limited
("Skeena").
Eskay Creek is a past-producing gold-silver mine located in the
Golden Triangle of northwest British
Columbia. Eskay Creek has proven and probable mineral
reserves of 26.4 million tonnes at 3.37 grams per tonne ("g/t")
gold and 94 g/t silver containing approximately 2.9 million ounces
of gold and 80.2 million ounces of silver. In July 2021, Skeena completed a pre-feasibility
study for the project which highlighted a high-grade open-pit
operation producing an average of 249,000 ounces of gold and 7.2
million ounces of silver per year with an initial mine life of
approximately 10 years generating an after-tax NPV5% of
C$1.4 billion and a 56% IRR at a
$1,550 per ounce gold price. Skeena
is currently completing a feasibility study which is expected to be
released in the third quarter of 2022. (1)
Skeena has the right to purchase 0.5% of the 1.0% royalty for a
cash payment of C$17.5 million.
For more information on Eskay Creek, please visit
skeenaresources.com.
Bullfrog Gold Royalty
A 2.0% NSR royalty on the Bullfrog Gold project operated by
Augusta Gold Corp. ("Augusta").
Bullfrog Gold is a past-producing gold-silver mine located in
the prolific Bullfrog mining district near Beatty, Nevada. Bullfrog Gold has measured and
indicated resources of 71 million tonnes at 0.53 g/t gold and 1.26
g/t silver containing approximately 1.2 million ounces of gold and
2.9 million ounces of silver. Additionally, there are inferred
resources of 16.7 million tonnes at 0.48 g/t gold and 0.96 g/t
silver containing approximately 0.3 million ounces of gold and 0.5
million ounces of silver. Augusta expects to complete a
pre-feasibility study in the fourth quarter of 2022 with a path to
commercial production by 2024, subject to the preparation of
up-to-date economic studies, an affirmative board production
decision, and financing. (2)
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.
For more information on Bullfrog Gold, please visit
augustagold.com.
Lagunas Norte Royalty
A 2.0% NSR royalty on the refractory sulphide ore project
("PMR") of the Lagunas Norte mine operated by Boroo Pte Ltd
("Boroo").
Lagunas Norte is an open-pit heap-leach mine located in the Alto
Chicama mining district in northern Peru and has produced over 10 million ounces
of gold since 2005. As of June 30,
2021, Lagunas Norte had proven and probable reserves of 49.4
million tonnes at 2.49 g/t gold and 6.24 g/t silver containing
approximately 4.0 million ounces of gold and 9.9 million ounces of
silver. In December 2021, Boroo
announced a new technical report for Lagunas Norte, which included
the PMR project and had a 22 year mine life producing an average of
147,000 ounces of gold per year. (3)
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.
For more information on the Lagunas Norte PMR Project, please
visit boroomc.com.sg.
Sanutura (South Houndé) Royalties
A pair of 1.0% – 2.0% NSR royalties on the Tankoro deposit of
the Sanutura project operated by Sarama Resources Ltd.
("Sarama").
The Tankoro deposit is the primary deposit of Sanutura, Sarama's
flagship project located in the prolific Houndé Belt in
Burkina Faso. The Tankoro deposit
hosts an indicated resource of 9.4 million tonnes at 1.9 g/t gold
containing approximately 0.6 million ounces of gold and an inferred
resource of 43.6 million tonnes at 1.4 g/t gold containing
approximately 1.9 million ounces of gold. Sarama is currently
completing a 50,000 metre drill program to update the mineral
resource estimate which will lead to a preliminary economic
assessment expected to be completed in the fourth quarter of 2023.
(4)
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 terminate after one million ounces of gold
has been sold from the applicable covered areas. The Sanutura
royalties are subject to a right of first refusal.
For more information on Sanutura, please visit
saramaresources.com.
Other Royalties
Asset
|
Operator
|
Location
|
Stage
|
Royalty
|
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
(5)
|
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
(6)
|
Hopewell
(Kokomo/Sconi)
|
Australian
Mines
|
Australia
|
Development
|
A$1.00 – $2.00/t
ore (7)
|
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 (8)
|
Eva Cobar (Coronation
Hill)
|
UAU Pty
|
Australia
|
Exploration
|
45% of 2.0% NSR
(9)
|
Lone Star (Giants
Reef)
|
Emmerson
Resources
|
Australia
|
Exploration
|
1.0% NSR
(10)
|
Musgrave
|
Power
Minerals
|
Australia
|
Exploration
|
1.5% NSR
|
Orban
|
Evolution
Mining
|
Australia
|
Exploration
|
20% – 25% NPI
or
$0.50 – $1.25/t
ore (11)
|
Nipisi Area
|
Canadian Natural
Resources
|
Canada
|
Exploration
|
1.0% – 2.5% GORR
(12)
|
El Toqui
|
Laguna Gold
|
Chile
|
Idle
|
2.0% NSR
(13)
|
Sunrise
|
AngloGold
Ashanti
|
Australia
|
Idle
|
Variable $/oz
(14)
|
Transaction Summary
Maverix will pay $50 million in
cash to acquire the Royalty Portfolio. In addition, Maverix has
agreed to make up to a total of $10
million in contingent payments if the following events occur
within six years of the closing date of the Transaction: (i)
$6 million payable upon Eskay Creek
receiving all material permits required to commence construction;
(ii) $2 million payable when Maverix
has received $10 million in payments
from the Royalty Portfolio (excluding any proceeds derived from
Eskay Creek); and (iii) $2 million
payable when Maverix has received $20
million in payments from the Royalty Portfolio (excluding
any proceeds derived from Eskay Creek).
Maverix will use cash on hand and its revolving credit facility
to fund the upfront purchase price of the Transaction. The
Transaction is expected to close by the end of September and is
subject to customary closing conditions.
(1) Mineral reserves effective as of
June 30, 2021. For more information on Eskay Creek, please refer to
the Eskay Creek description page on the Skeena website, the news
release dated July 22, 2021 and the Technical Report entitled
"Eskay Creek Project, NI 43-101 Technical Report and Prefeasibility
Study, British Columbia, Canada" dated July 22, 2021, available at
skeenaresources.com or under Skeena's profile at sedar.com.
(2) Mineral resources effective as of December 31,
2021. For more information on Bullfrog Gold, please refer to the
Bullfrog Gold description page on the Augusta website, the June
2022 corporate presentation and the Technical Report entitled "NI
43-101 Technical Report, Mineral Resource Estimate, Bullfrog Gold
Project, Nye County, Nevada" dated December 31, 2021, available at
augustagold.com or under Augusta's profile at sedar.com.
(3) Mineral reserves effective as of June 30, 2021.
For more information on Lagunas Norte, please refer to the Lagunas
Norte description page on the Boroo website and the news release
dated December 1, 2021.
(4) Mineral resources effective as of November 16,
2021. For more information on Sanutura, please refer to the
Sanutura description page on the Sarama website, the news release
dated February 7, 2022 and the Technical Report entitled "NI 43-101
Technical Report, Sanutura Project, South-West Burkina Faso" dated
February 7, 2022, available under Sarama's profile at
sedar.com.
(5) Royalty takes effect after the first 50,000
gold ounces have been recovered.
(6) Royalty is 1.5% on tertiary uranium, 3.5% on
hard rock uranium and 2.5% on all other minerals.
(7) 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.
(8) Royalty is capped at 1,750 kt of nickel
laterite ore. The Camelback Bore royalty is subject to a right of
first offer.
(9) Payees are entitled to A$0.20/kg
U3O8 (or equivalent) payment on discovery of
an indicated mineral resource.
(10) Royalty is capped at A$825,000 in cumulative
royalty payments.
(11) 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).
(12) 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.
(13) Royalty does not include lead or zinc.
(14) Royalty varies based on gold price and sliding
scale rate.
|
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 ("NI 43-101"), 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 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
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 the U.S. Securities and Exchange
Commission ("SEC") under subpart 1300 of Regulation S-K ("S-K
1300"). 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. While the terms are substantially similar to the
same terms defined under S-K 1300 there are differences in the
definitions. Accordingly, there is no assurance any mineral
resources that the Company may report under NI 43-101 will be the
same as resource estimates prepared under the standards adopted
under S-K 1300. Because the Company is eligible for the
Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, the Company is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. 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, statements with respect to the
expected completion of the Transaction upon satisfaction by the
parties of the conditions to closing, the anticipated timing of
closing, 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 in connection with the
Transaction or otherwise, the obligation of the Company to make the
contingent payments in certain circumstances, 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.
|
Technical and
third-party information
|
The disclosure herein
and relating to properties and operations on the properties in
which Maverix proposes to acquire a royalty, stream or other
interest 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 or prospective royalty
or stream holder, Maverix has limited, if any, access to properties
included in its asset portfolio and the Royalty 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 or proposes to
acquire a royalty, stream or other interest, 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.