TMAC Enters $40 Million Royalty Amendment with Maverix
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TMAC Resources Inc. has entered into an amending agreement to the existing 1 percent net smelter royalty with Maverix Metals. The royalty smendment provides Maverix with an additional 1.5 percent NSR for proceeds of US$40 million. The royalty amendment includes negotiated step down and buyback rights in favor of the company.
“This royalty amendment has strengthened the company’s balance sheet to enable ongoing investment in growth at Hope Bay while providing a buffer against operational volatility and funding our seasonal sealift. One area for such growth is exploration at the Doris mine, an update to which was discussed in a concurrent press release this morning,” said Jason Neal, president and chief executive officer of TMAC.
“We determined this royalty transaction to be the most attractive cost of capital, preserves the best participation in strengthening gold prices for our shareholders, and importantly has the benefit of maintaining both financial and strategic flexibility,” added Neal.
About TMAC Resources
TMAC Resources operates Hope Bay located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont, and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of sunk expenditures have been spent in exploration and evaluation, surface infrastructure, and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through 2018. Hope Bay has 4.8 million ounces of measured and indicated resources at Doris, Madrid and Boston deposits, largely within 350 metres of surface. There is 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 is now permitted to produce from both Madrid and Boston.
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