Silver

Pan American Silver (TSX:PAA) and MacMillan Minerals (TSXV:MMX) have entered an arrangement with Maverix Minerals to create a new royalty and streaming company. The new company will be headed by Geoff Burns, former CEO of Pan American Silver. As quoted in the press release: Under the terms of the Arrangement, MacMillan will acquire all of …

Pan American Silver (TSX:PAA) and MacMillan Minerals (TSXV:MMX) have entered an arrangement with Maverix Minerals to create a new royalty and streaming company. The new company will be headed by Geoff Burns, former CEO of Pan American Silver.
As quoted in the press release:

Under the terms of the Arrangement, MacMillan will acquire all of the issued and outstanding securities of Maverix (the “Reverse Takeover“, or “RTO“). Concurrently MacMillan will purchase a package of thirteen royalties and precious metal streams from Pan American (collectively, the “Portfolio“, as described below).
On the closing of the Arrangement, MacMillan will be renamed Maverix Metals Inc. and will continue to trade as MMX on the TSX Venture Exchange. Mr. Geoff Burns, the former CEO of Pan American, will be appointed as the Chairman of the combined company and Mr. Daniel O’Flaherty will be appointed as Maverix’s Chief Executive Officer.
Transaction Highlights

  • Surfacing Value: This is an opportune time in the precious metals cycle for Pan American to consolidate and expose to the market a portfolio of royalties and metal streams, previously widely dispersed throughout Pan American and its subsidiaries;
  • Cash Flow Positive: With immediate cash flow from existing streams and royalties and a healthy balance sheet (CAD$5.5 millionin cash, after transactions expenses) Maverix will be well positioned to pursue further opportunities in the precious metals sector;
  • Significant Price Leverage and Growth Potential: The Portfolio contains attractive leverage to both gold and silver prices from operating mines, and includes royalties and a metal stream on several potential near-term development assets;
  • Assets Located In Preferred Mining Jurisdictions: The Portfolio provides geographic diversification in mining friendly jurisdictions, predominantly Mexico, Canada, and Peru;
  • Highly Experienced Management: Maverix will have a financially disciplined and conservative leadership group, with an established reputation for being straightforward and transparent; and
  • Major Shareholder: Pan American will have a 54% majority ownership position (63% fully-diluted) in the combined company which will provide Pan American’s shareholders with meaningful ongoing exposure to the Portfolio and Maverix’s growth potential. Further, Pan American will be in a position to identify opportunities for Maverix thereby assisting in its growth for the benefit of both Maverix and Pan American shareholders.

Click here for the full press release.

MARKETS

Markets
TSX18444.22+2.38
TSXV594.13+11.54
DOW28725.51-500.10
S&P 5003585.62-54.85
NASD10575.62-161.89
ASX6474.20-80.80

COMMODITIES

Commodities
Gold1660.600.00
Silver19.030.00
Copper3.39-0.03
Palladium2167.880.00
Platinum864.790.00
Oil79.74-1.49
Heating Oil3.23-0.07
Natural Gas6.83-0.05

DOWNLOAD FREE REPORTS

×