VANCOUVER (miningweekly.com) – Gold major NYSE-listed Newmont Mining has agreed to sell its royalty and streaming portfolio to junior TSX-V-listed Maverix Metals in a cash-and-scrip deal that will see Newmont take a 28% stake in the aspirant royalty and streaming firm.
Under the terms of the deal, Newmont will receive 60-million Maverix common shares, and $17-million in cash, as well as warrants for a further ten-million Maverix common shares.
Newmont’s royalty portfolio includes 54 precious metals and industrial minerals royalties, including royalties at TMAC Resources’ Hope Bay mine, in Canada, and Premier Gold’s McCoy Cove project, in Nevada.
“Our strategic partnership and equity interest in Maverix generates value for both companies’ shareholders. Maverix’s management team has a strong record of managing and growing high-quality royalty and streaming assets in favourable mining districts on four continents,” Newmont executive VP for strategic development Randy Engel stated.
Newmont will be allowed to nominate one director on Maverix’s board and it will have pre-emptive rights to participate in future financings to maintain the company’s ownership stake.
Newmont’s strategic partnership will provide ongoing exposure to Maverix’s growing portfolio, which currently includes 27 high-quality royalties and streams, ten of which are on producing mines.
Closing of the transaction is expected to occur in the second quarter of this year.
Maverix's equity rose by up to 18% on Tuesday to an intra-day high of C$1.71 a share, with that of Newmont closing the day 1.29% lower at $38.93 a share.