Maverix Metals signs $90 million deal with Newmont for gold royalties

Gold royalty and streaming company Maverix Metals has signed a deal to acquire a portfolio of gold royalties from mining giant Newmont Corporation, it announced earlier this week.

The US$90 million deal for 11 gold royalties on a selection of Newmont’s North/central American assets will provide Maverix with an enhanced growth pipeline and near term cash flow.

As part of the agreement, Newmont will increase its ownership stake in Maverix to around 30% by taking on 12 million additional shares valued at $5 per share.

Key assets from the royalty package include a 2% net smelter return (NSR) royalty on the Orla Mining-owned Camino Rojo project in Mexico, a 1% NSR royalty on the high-grade Cerro Blanco project in Guatemala and a sliding scale NSR royalty on the Mother Lode project in the US.

“The acquisition of these high-quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets,” said Maverix CEO Dan O’Flaherty. “We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets.”

Certain royalties in the portfolio are subject to rights of first refusal as well as the requirement for various transfer consents. Any proceeds from the exercise of a right of first refusal will be paid to Maverix.