Newmont Inks Strategic Deal With Maverix For Royalty Sale
Zacks Investment Research | May 30, 2018 08:44AM ET
Newmont Mining Corporation (NYSE:NEM) has entered into a deal to sell its royalty portfolio to an emerging precious metals royalty and streaming company, Maverix Metals Inc. The strategic partnership will provide Newmont an ongoing exposure to Maverix’s growing portfolio of 27 high-quality royalties and streams, out of which 10 are on producing mines.
Per the agreement, Newmont will receive $17 million in cash, 60 million common shares of Maverix (representing roughly 28% ownership interest) and warrants for an additional 10 million common shares. The transaction is expected to close in second-quarter 2018.
Notably, Newmont’s royalty portfolio consists of 54 precious metals and industrial minerals royalties, including royalties at Premier Gold’s McCoy Cove project in Nevada and TMAC Resources’ Hope Bay mine in Canada.
With regards to this transaction, both parties will ink a shareholder agreement that will entitle Newmont to have a seat on Maverix’s board and pre-emptive rights to take part in future financings of the company to maintain its ownership stake.
Newmont’s shares have moved up 4.6% in the past three months, outperforming the
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