Maverix nets $12m in cash from Kinross royalty deal
Royalty and streaming company Maverix Metals has received a $12-million cash injection as part of its acquisition of the royalty portfolio of gold miner Kinross Gold.
As part of the deal, first announced last month, certain royalties in the portfolio were subject to rights of first refusal (ROFR), with one such right having been exercised.
Brett Resource, a subsidiary of Agnico Eagle Mines, has exercised its ROFR on the sale of the 2% net smelter return royalty on the Hammond Reef project located in Ontario, Canada. As a result, Maverix has received a cash payment of $12-million.
“All the other royalties in the royalty portfolio that were subject to restrictions on transfer, that included a ROFR, have expired and Maverix has completed the acquisition of those royalties,” the company said on Monday.
Meanwhile, Maverix owns a fixed payment stream on the Amulsar project, in Armenia, which it acquired as part of the purchase in June 2018 of a royalty portfolio from Newmont Mining.
The payment stream comprises fixed payments of $1-million a quarter, for 20 consecutive quarters, which will start when commercial production at Amulsar is achieved.
However, Lydian International, the owner of Amulsar, was last month granted protection under the Companies’ Creditors Arrangement Act. The company halted work on the project in mid-2018, after protestors blocked access to the site and is yet to resume construction.
Maverix said that it was monitoring the situation closely, and warned that an impairment might be required.
Maverix currently has a carrying value of C$18.9-million associated with its Amulsar fixed payment stream.
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