Maverix Metals strikes Silver Stream agreement on Northern Vertex's Moss Mine
Maverix Metals Inc (TSX-V:MMX) has reached an agreement that broadens the scope of its previously-announced acquisition of a silver stream in northwest Arizona from a subsidiary of Northern Vertex Mining Corp.
In exchange for an up-front cash payment of US$20 million, the new agreement for the silver stream now entitles Maverix to purchase 100% of the silver produced from the Moss mine, which is operated by Golden Vertex Corp, a subsidiary of Northern Vertex. Once Maverix has purchased 3.5 million ounces of silver, the company will have the right to purchase 50% of the life of mine silver produced from the Moss mine.
“Maverix is excited to partner with Northern Vertex by offering a financing solution that will allow them to significantly de-lever their balance sheet and keep the operating team at Moss fully focused on unlocking the mine’s long-term potential,” said Dan O’Flaherty, CEO of Maverix.
“The addition of this cash flowing asset in a stable jurisdiction further strengthens our portfolio and meaningfully increases our attributable precious metals production per share,” O’Flaherty added.
Maverix entered into this silver purchase agreement with Northern Vertex and its operating subsidiary Golden Vertex Corp.
Silver stream at Moss mine to generate immediate revenue
With the Moss mine seeing commercial production in September of 2018, the Silver Stream will generate immediate revenue for Maverix.
Located near Bullhead City in northwest Arizona, the Moss mine is on track to become a low-cost open-pit mining and heap leach operation. Moss is located in northwest Arizona, a stable mining jurisdiction with a long history of mining operations.
The Silver Stream agreement applies to all current and future phases of operations at the Moss mine.
Maverix will make ongoing cash payments to Golden Vertex equal to 20% of the average price of silver for the five consecutive trading days prior to delivery.
The transaction is set to close this month, and Maverix intends to fund the up-front cash payment via cash on hand and its revolving credit facility.
The Moss mine is 100% owned by Northern Vertex and is a 5,000 tonnes per day, open pit, heap leach, gold-silver operation.
Maverix Metals rose 1.7% to hit C$2.42 in Thursday’s morning trading session.
Story by ProactiveInvestors