All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, June 29, 2021 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (NYSE American: MMX) (TSX: MMX) is pleased
to announce the acquisition of a portfolio of precious metals
royalties from Pan American Silver Corp. ("Pan American
Silver").
Maverix has acquired a portfolio of six royalties from Pan
American Silver in exchange for 491,071 common shares of Maverix
and a cash payment of $7,000,000.
Ryan McIntyre, President of
Maverix, commented, "We are happy to have completed the purchase of
this gold-focused royalty portfolio from Pan American Silver, our
most tenured strategic shareholder. This acquisition adds future
option value to our overall asset portfolio which now boasts 121
royalty and stream assets, 13 of which are currently paying and a
number of which are on advanced stage projects."
Royalty Portfolio
Asset
|
Owner
|
Location
|
Stage
|
Royalty
|
Fenn-Gib(1)
|
Mayfair
Gold
|
Ontario,
Canada
|
Exploration
|
1% – 2.5%
NSR
|
Recuperada
|
Silver X
Mining
|
Huancavelica,
Peru
|
Operating
|
3% NSR
|
Juby
|
Aris Gold
|
Ontario,
Canada
|
Exploration
|
1% NSR
|
Hog Heaven
|
High Power
Exploration / Brixton Metals
|
Montana,
USA
|
Exploration
|
1.5% NSR
|
Hernandez
|
First Majestic
Silver
|
Sonora,
Mexico
|
Exploration
|
2.5% NSR
|
Blakelock
|
LaSalle
Exploration
|
Ontario,
Canada
|
Exploration
|
2% NSR
|
Key Assets
Fenn-Gib Royalty
A 1.0% - 2.5% net smelter return ("NSR") royalty on a portion of
the Fenn-Gib gold project, operated by Mayfair Gold Corp. ("Mayfair
Gold") and located in the Timmins
gold camp in Ontario which hosts
an indicated resource estimate of 70.2 million tonnes at 0.92 grams
per tonne ("g/t") gold containing 2.1 million ounces of gold and an
inferred resource of 3.8 million tonnes at 0.62 g/t gold containing
0.1 million ounces of gold. The Fenn-Gib project comprises
approximately 4,800 hectares, of which more than 75% is unexplored.
The project is part of the extensive and prolific Abitibi Gold Belt. Mayfair Gold, the owner of the project, is
currently undertaking a 50,000 metre infill and expansion drill
program on the project.(2)
For more information on Fenn-Gib please visit
www.mayfairgold.ca.
Recuperada Royalty
A 3.0% NSR royalty on a portion of the Recuperada property
located in Huancavelica, Peru. The
property is a past producer and currently has an inferred resource
of 7.3 million tonnes at 131 g/t silver, 3.17% lead and 2.04% zinc
containing 30.7 million ounces of silver, 513 million pounds of
lead, and 377 million pounds of zinc. Silver X Mining Corp.
("Silver X") and Mines and Metals Trading (Peru) PLC recently completed a business
combination to create Latin
America's next low-cost silver producer. Silver X is
well-financed to fund the maiden 30,000 metre drill campaign that
is currently underway at the Recuperada project, with more than
C$14 million raised in a concurrent
financing. The goal of the drill program is to optimize operations
and collect the data required to expand the current inferred
resource at Recuperada.(3)
For more information on Recuperada please visit
www.silverx-mining.com.
Juby Royalty
A 1.0% NSR royalty on the advanced exploration-stage Juby
project operated by Aris Gold Corporation ("Aris Gold") and located
in Ontario, Canada, 100 kilometres
south-southeast of the Timmins
gold camp within the Shining Tree area in the southern part of the
Abitibi greenstone belt. The Juby project has excellent access to
infrastructure including a major highway, a power transmission line
that passes through the property and an abundance of water in the
region. A 2020 mineral resource estimate shows an indicated mineral
resource of 21.3 million tonnes at 1.17 g/t gold containing 0.8
million ounces of gold and an inferred mineral resource of 47.1
million tonnes at 1.01 g/t gold containing 1.5 million ounces of
gold. Aris Gold has recently
commenced an initial 10,000 metre drill program at the Juby project
with drilling expected to begin in the third quarter of 2021.
Aris Gold has the right to buy back
0.5% of the royalty for a cash payment of $5,000,000.(4)
For more information on Juby please visit www.arisgold.com.
(1) Maverix is acquiring three
separate royalties related to this project. There are two separate
non-overlapping 1% NSR royalties that, together, cover the entire
project. The third royalty is an additional 1.5% NSR that partially
overlaps the project. Therefore, in aggregate, Maverix's royalty
coverage will range between 1-2.5% in relation to the Fenn-Gib
project.
|
(2) Mineral resources effective
February 5, 2021. For more information on Fenn-Gib, please refer to
the Fenn-Gib description page on the Mayfair Gold website, the news
release dated April 8, 2021 and the Technical Report entitled "NI
43-101 Technical Report Fenn-Gib Project, Ontario, Canada" dated
February 5, 2021 available at www.mayfairgold.ca, or under Mayfair
Gold's profile at www.sedar.com.
|
(3) Mineral resource effective July
2019. For more information on Recuperada, please refer to Silver X
Mining's (previously Oro X Mining Corp.) news releases dated June
23, 2021, April 16, 2021 and February 11, 2021, and the Technical
Report entitled "Amended & Restated NI 43-101 Technical Report
for the Recuperada Project, Peru" dated October 15, 2020 filed
under Silver X Mining's profile at www.sedar.com.
|
(4) Mineral resources effective July
14, 2020. For more information on Juby please refer to the Juby
description page on the Aris Gold website, the news release dated
May 4, 2021 and the Technical Report entitled "Technical Report on
the Updated Mineral Resource Estimate for the Juby Gold Project,
Tyrell Township, Shining Tree Area, Ontario" dated July 14,
2020.
|
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, completion of certain anticipated milestones,
transactions and developments by the operators of certain
underlying projects and mines in respect of Maverix's royalty and
stream portfolio, anticipated future cash flows, future financial
reporting by Maverix, the receipt of payments from Maverix's mining
royalty and streaming portfolio, the requirements for regulatory
approvals and third party consents, and the completion of mine
expansion under construction phases at the mines or properties that
Maverix holds an interests in. 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.