Canadian Mining Journal

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ROYALTIES: Maverix Metals boosts its portfolio with Kinross deal



Drilling at the DeLamar gold-silver property in Idaho. (Image: Integra Resources)

Kinross Gold is selling its royalty portfolio to Maverix Metals for US$74 million in cash and shares. The deal includes a US$25-million cash component and 11.2 million shares in Maverix, which will give Kinross a 9.4% interest in the growing precious metals royalty and streaming company.

The transaction will give Maverix a total of 25 precious metals royalties, including interests in Integra Resources’ DeLamar project in Idaho; Polymetal’s Omolon Hub operations in Russia; Barrick Gold and Newmont Goldcorp’s Cerro Casale project in Chile; Premier Gold Mines’ McCoy Cove project in Nevada; Agnico Eagle Mines’ Hammond Reef project in Ontario; as well as in early stage development and exploration projects.

Maverix’s portfolio already includes 80 royalties and streams on mining assets, including 13 on producing mines.

The transaction, which includes an investor rights agreement that will allow Kinross to participate in future equity financings to maintain its interest, is expected to close by the end of the year.

“This agreement realizes the value of our royalty portfolio today while also providing upside exposure through a meaningful equity position in Maverix, a company with a proven track record of growth,” said J. Paul Rollinson, president and CEO of Kinross Gold.

Details of each royalty and more information are available at www.maverixmetals.com or www.kinross.com.