Maverix Metals Inc (CVE:MMX) told investors Thursday it had closed its previously announced acquisition of a silver stream on the operating Moss mine in northwest Arizona, USA.
The stream has been bought from a wholly owned subsidiary of Northern Vertex Mining Corp.
As reported on December 6, in exchange for an up-front cash payment of US$20 million, Maverix can now buy 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.
With Moss seeing commercial production in September this year, the silver stream will generate immediate revenue for Maverix.
“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 aims to give shareholders significant low-risk leverage to the gold price and to increase underlying per-share value.
Contact Giles Gwinnett at [email protected]
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