All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Sept. 27, 2021 /CNW/ - Maverix Metals Inc.
(the "Company" or "Maverix") (NYSE American: MMX) (TSX: MMX)
is pleased to announce it has reached an agreement with Auramet
Capital Partners, L.P., an affiliate of Auramet International LLC
("Auramet"), to acquire a gold stream and enter a long-term
strategic partnership.
Transaction Highlights
- Immediate increase to annual attributable gold equivalent
ounces and cash flow;
- Increased diversification through Auramet's highly diversified
underlying asset base; and
- Potential future acquisitions from the strategic partnership
with Auramet, including through participation rights and rights of
first refusal on Auramet sourced royalty and streaming
transactions.
Dan O'Flaherty, CEO of Maverix,
commented, "Maverix has a longstanding relationship with Auramet,
including acquiring a portfolio of royalties from Auramet in 2017,
which has already returned over 85% of our initial investment and
continues to generate meaningful cash flow. This transaction adds
significant and immediate cash flow, as well as additional exposure
to gold, while also forming a partnership that could allow Maverix
to acquire future royalties sourced by Auramet, through its
relationships with an extensive and growing list of precious metals
companies."
Transaction Summary
Maverix will make a cash payment equal to $50 million to acquire a gold stream that will
deliver 5,000 ounces of gold to Maverix per year. The gold stream
shall be delivered quarterly and Maverix will make ongoing cash
payments equal to 16% of the spot gold price for each gold ounce
delivered. After a total of 50,000 ounces of gold have been
delivered to the stream, Auramet shall have the option to terminate
the stream for a cash payment of $5
million less certain cash flows related to the stream.
The stream is structured in Canada and has certain security
provisions.
In addition to the gold stream, Maverix will be entitled to
receive an amount in gold that is equivalent to all dividends
distributed by Auramet on 2% of its shares outstanding, which is
done semi-annually. In fiscal year 2020, Auramet paid out
$35 million in dividends to its
shareholders.
Auramet expects to use the proceeds of the transaction to make
further investments in the mining sector, including acquiring small
royalties and streams, as well as for general corporate
purposes.
For the duration of the gold stream, Maverix will have a right
of first refusal to purchase any royalties or streams that Auramet
decides to sell from their current portfolio or acquires in the
future. Furthermore, Maverix will have the right to participate in
any royalty or stream that Auramet may acquire in the future where
the transaction value is equal to or greater than $20 million.
About Auramet
Auramet is one of the largest physical precious metals merchants
in the world with over $20 billion in
annual revenues and provides a full range of services to all
participants in the precious metals chain, from extraction and
production to manufacturing and consumption. Auramet is a private
company established in 2004 by a team who had worked previously
together since 1989. Their business is comprised of three main
activities: physical metals trading, metals merchant banking and
advisory. Auramet has built a consistently successful and prominent
franchise in the metals space on the back of an experienced
management team that has proven to be innovative and capable of
delivering the highest quality service to participants in the
sector. In fiscal year 2020, it purchased over 6 million ounces of
gold, 70 million ounces of silver and 3.2 million ounces of PGMs
sourced from a diversified base of over 75 mining companies, 15
recycling companies and 20 refineries/smelters (with none
comprising more than 5%). Auramet has also provided term financing
facilities in excess of $850 million
to date in the mining sector and is looking to grow its capital
investment business in the precious metals and battery-related
metals mining space.
For more information on Auramet please visit auramet.com.
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, closing of the transaction, anticipated future
dividend payments, transactions that could be completed under the
right of first refusal and or participation right, termination of
the definitive agreement on anticipated future milestones,
completion of certain anticipated milestones, anticipated future
cash flows, future financial reporting by Maverix, and the
requirements for regulatory approvals and third party consents.
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.