TORONTO -- In return for a cash payment of US$40 million, gold miner TMAC Resources has sold a 1.5% NSR royalty to Maverix Metals. Maverix already holds a 1% NSR royalty on TMAC's Hope Bay gold mine in Nunavut.
TMAC's president and CEO, Jason Neal, said the royalty amendment would strengthen the company's balance sheet and allow it to continue to invest in Hope Bay while providing a buffer against operational volatility and funding TMAC's seasonal sealift.
“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,” he said.
Maverix will also make a US$3-million equity investment in TMAC at a price of $6 per share.
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TMAC poured its first gold at the Doris mine in February 2017. (Image: TMAC Resources)[/caption]
The deal includes buyback rights for TMAC, under certain conditions. It also requires approval of lender Sprott Resource Lenders.
TMAC also released results from regional surface exploration and underground drilling at its Doris BTD extension.
Underground drilling at Doris BTD produced highlights including: 1.8 metres of 193.3 g/t gold, 4.4 metres of 15.6 g/t gold, and 10.8 metres of 110.8 g/t gold.
Surface exploration drilling in a new area now called “Doris Valley” returned highlights of 7.5 metres grading 7.7 g/t gold, 4.8 metres grading 5.3 g/t gold and 8.5 metres grading 9 g/t gold.
The company, which has been struggling to improve gold recovery in the plant, produced 78,570 oz. gold in the first half of the year.
See www.tmacresources.com for more information.
TMAC poured its first gold at the Doris mine in February 2017. (Image: TMAC Resources)[/caption]
The deal includes buyback rights for TMAC, under certain conditions. It also requires approval of lender Sprott Resource Lenders.
TMAC also released results from regional surface exploration and underground drilling at its Doris BTD extension.
Underground drilling at Doris BTD produced highlights including: 1.8 metres of 193.3 g/t gold, 4.4 metres of 15.6 g/t gold, and 10.8 metres of 110.8 g/t gold.
Surface exploration drilling in a new area now called “Doris Valley” returned highlights of 7.5 metres grading 7.7 g/t gold, 4.8 metres grading 5.3 g/t gold and 8.5 metres grading 9 g/t gold.
The company, which has been struggling to improve gold recovery in the plant, produced 78,570 oz. gold in the first half of the year.
See www.tmacresources.com for more information. 
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