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Maverix Metals adds to royalty portfolio with new silver stream in Honduras

Shares of Maverix shot up nearly 7% of the news, which provides the company an immediate increase in cash flow

silver bars
The Vancouver-based company currently has 79 royalties and streams, of which 12 are producing mines.

Maverix Metals Inc (CVE:MMX) (OTCMKTS:MACIF) bolstered its streaming portfolio with a new agreement at the El Mochito Mine, owned and operated by Ascendant Resources Inc.

The deal will see Maverix make an advance payment of $US7.5 million in return for 22.5% of the silver produced from El Mochito, and an option to pay a further US$7.5 million for an additional 17.5% of the silver produced.

Shares of Maverix shot up nearly 7% to C$2.58 in Toronto and 6% to US$1.92 in New York.

Maverix will pay 25% of the silver price at the time of delivery. The stream will be effective from January 1, 2019.

El Mochito is located in northwestern Honduras and currently produces around 2,300 tons per day of zinc, lead and silver. Ascendant’s production guidance for 2019 is between 850,000 and 1.2 million ounces of silver concentrate.

READ: Maverix Metals achieved record revenue in 2018; sees further growth ahead

For Maverix shareholders, the new stream provides the royalty company with an immediate increase to cash flow, with around 165,000 ounces of annual silver deliveries over the first three years of the agreement.

“We are very pleased to partner with the team at Ascendant and we look forward to participating with them in the long-term potential of El Mochito,” commented Dan O’Flaherty, CEO of Maverix, in a statement. “This transaction is consistent with our stated strategy of acquiring long life precious metal streams that are immediately accretive to both our cash flow and net asset value.”

The Vancouver-based company currently has 79 royalties and streams, of which 12 are producing mines.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: Maverix Metals Inc

Price: 6.37 CAD

Market: TSX
Market Cap: $815.42 m

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