Maverix will issue to Newmont 12-million common shares and pay $15-million in cash upon closing of the transaction. The deemed price of $5 a share for the common shares issued to Newmont represents a 7.4% discount to the market price.
The streamer will make contingent cash payments of up to $15-million if certain production milestones at certain underlying assets are achieved within five years of closing of the transaction. Specifically, Maverix will make a $5-million cash payment to Newmont for each of the Mother Lode, Imperial, and Ana Paula projects if they achieve commercial production within five years of closing the transaction.
“The acquisition of these high-quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets. We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets,” said Maverix CEO Dan O’Flaherty.