Kinross Inks Deal With Maverix To Sell Royalty Portfolio
Zacks Investment Research | Dec 02, 2019 09:42PM ET
Kinross Gold Corporation (NYSE:KGC) signed a deal to sell its royalty portfolio to Maverix Metals Inc. (TSX:MMX) for the total consideration of $74 million. The total consideration includes $25 million in cash and 11.2 million Maverix common shares, which represent a 9.4% ownership stake in Maverix.
Per Kinross, the deal realizes the value of its royalty portfolio as well as provides it with upside exposure through its equity position in Maverix.
As part of the deal, Kinross will enter an investor rights agreement with Maverix on transaction closing, which will grant it with pre-emptive rights to engage in any equity financing to retain its ownership position in the future.
The transaction is slated to be closed on or before the end of 2019, subject to customary closing terms and conditions.
Paradigm Capital served as the financial advisor for Kinross in connection with the deal.
Shares of Kinross have rallied 54.4% in the past year compared with the Zacks Investment Research
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