TMAC enters into a royalty amendment with Maverix
14 August 2019
TMAC Resources Inc. is pleased to announce that it has entered into an amending agreement (the “Royalty Amendment”) to the existing 1% net smelter royalty (“NSR”) with Maverix Metals Inc. (“Maverix”). The Royalty Amendment provides Maverix with an additional 1.5% NSR for proceeds of US$40 million. The Royalty Amendment includes negotiated step down and buyback rights in favour of the Company.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “This royalty amendment has strengthened the Company’s balance sheet to enable ongoing investment in growth at Hope Bay while providing a buffer against operational volatility and funding our seasonal sealift. One area for such growth is exploration at the Doris mine, an update to which was discussed in a concurrent press release this morning. We determined this royalty transaction to be the most attractive cost of capital, preserves the best participation in strengthening gold prices for our shareholders, and importantly has the benefit of maintaining both financial and strategic flexibility.”