Published: August 14, 2019 |

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Maverix Metals has agreed to acquire an additional net smelter return (NSR) royalty on the Hope Bay mine in Nunavut, Canada, owned and operated by TMAC Resources. Maverix currently owns an existing 1.0 percent NSR royalty on Hope Bay.

Maverix and TMAC have agreed to amend the existing royalty agreement whereby Maverix will acquire an additional 1.5 percent NSR royalty on Hope Bay in exchange for a cash payment of US$40 million. Upon closing of the transaction, Maverix will own a combined 2.5 percent NSR royalty on Hope Bay. Maverix will also be entitled to receive an additional 0.25 percent NSR royalty until certain conditions with respect to the additional royalty are satisfied.

“Maverix is delighted to expand and support our existing relationship with TMAC through an increase to our interest at their Hope Bay mine. Hope Bay is a multi-million ounce camp with tremendous exploration and expansion potential that we expect will operate for decades. This transaction provides both immediate and long-term growth and additional gold exposure for Maverix shareholders,” said Dan O’Flaherty, CEO of Maverix.

Transaction Highlights

• Increased royalty interest in a world-class gold camp in Canada, hosting over 6 million ounces in global
  resources, with significant exploration potential.
• Immediately increases Maverix’s attributable gold equivalent production per share.
• Accretive to Maverix’s net asset value and cash flow per share.

Hope Bay began producing gold in early 2017, with an initial 20 year mine life, and is expected to produce over 160,000 ounces of gold in 2019. TMAC continues to optimize the established operations at the Doris mine with ongoing productivity improvements, including the gravity project now completed and the second surge bin in full operation as of July 1, 2019.

Exploration drilling at Doris and Madrid continues to demonstrate the continuity of high-grade gold mineralization, including visible gold at Doris, increasing TMAC’s confidence in the potential to grow these established deposits considerably at depth, and then grow resources further through the prioritized exploration of the more than 90 other identified regional targets.

“TMAC has shown that through the combination of incremental improvements to operations, practical measures taken to address challenges as they arise, and a vision commensurate with the potential of the mine, the company is well positioned to realize a successful Hope Bay operation for many years to come,” said Doug Ward, Vice President Technical Services of Maverix.

About Maverix
Maverix is a gold royalty and streaming company. Maverix’s mission is to provide its shareholders with significant low risk leverage to precious metal prices and to increase underlying per share value by continuing to grow its portfolio with acquisitions of high-quality royalties and streams that offer robust returns.

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