Newmont Forms New Strategic Partnership with Maverix Metals

Newmont Mining Corporation (NYSE:NEM) announced that it has entered into an agreement to sell its royalty portfolio to Maverix Metals Inc. (TSXV: MMX), an emerging precious metals royalty and streaming company. In connection with the transaction, Newmont will receive 60 million Maverix common shares, representing an ownership interest of approximately 28 percent; US$17 million in cash; and warrants for an additional 10 million common shares.

As quoted in the press release:

Newmont’s royalty portfolio includes 54 precious metals and industrial minerals royalties, including royalties at TMAC Resources’ Hope Bay mine in Canada and Premier Gold’s McCoy Cove project in Nevada.

In connection with the transaction, the parties will enter into a shareholder agreement which will entitle Newmont to a seat on Maverix’s board of directors and pre-emptive rights to participate in future financings to maintain the company’s ownership stake. Newmont’s strategic partnership will provide ongoing exposure to Maverix’s growing portfolio, which currently includes 27 high-quality royalties and streams, 10 of which are on producing mines. Closing of the transaction is expected to occur in the second quarter of 2018.

Randy Engel, executive vice president, strategic development and CEO, commented:

Our strategic partnership and equity interest in Maverix generates value for both companies’ shareholders. Maverix’s management team has a strong track record of managing and growing high-quality royalty and streaming assets in favorable mining districts on four continents.

Click here to read the full Newmont Mining Corporation (NYSE:NEM) press release.