TSX- and NYSE-listed Kinross Gold will sell its royalty portfolio to gold-focused Maverix Metals for $74-million.
The total consideration includes $25-million in cash and about 11.2-million Maverix common shares, representing a 9.4% interest in Maverix.
Kinross president and CEO J Paul Rollinson says the transaction realises the value of the company’s royalty portfolio, while also providing upside exposure through a “meaningful equity position in Maverix”, a company with a track record of growth.
As part of the transaction, Kinross will enter into an investor rights agreement with Maverix on closing, which, among other customary terms and conditions, will provide Kinross with pre-emptive rights to participate in any future equity financings to maintain its ownership position.
The transaction is expected to close before the end of this year.
Kinross’ royalty portfolio comprises 25 precious metals royalties, including interests in Integra Resources’ DeLamar project, in Idaho, in the US; 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, in the US; Agnico Eagle’s Hammond Reef project, in Ontario, Canada; and a number of early-stage development and exploration projects.