DENVER, CO (STL.News) Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced today that on September 20, 2020, it entered into a definitive agreement with Maverix Metals Inc. (Maverix) to sell a portfolio of eleven royalties to Maverix (the “Transaction”). As partial consideration under the Transaction, Newmont will acquire 12,000,000 common shares (each a “Common Share”) of Maverix. The 12,000,000 Common Shares issued to Newmont will have an aggregate value of $79,092,024 (US$60,000,000) or $6.591 (US$5) per share (Exchange rate of 0.75861 as of close of business on Friday 9/18).
Immediately prior to the Transaction, Newmont owned or exercised control or direction over 30,000,000 Common Shares, representing approximately 23.4% of the issued and outstanding Common Shares and 5,000,000 common share purchase warrants (each, a “Warrant”), each Warrant entitling the holder to purchase one additional Common Share, representing 50% of the issued and outstanding Warrants.
Following the Transaction, Newmont, will own (i) 42,000,000 Common Shares, representing approximately 30% of the issued and outstanding Common Shares and (ii) 5,000,000, Warrants, representing 50% of the issued and outstanding Warrants. Should Newmont exercise all of the Warrants, Newmont would hold 47,000,000 Common Shares, representing approximately 32.4% of the issued and outstanding Common Shares (on a partially diluted basis).
The Common Shares were acquired for investment purposes. Newmont will evaluate its investment in Maverix from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease its shareholdings as circumstances require through market transactions, private agreements, or otherwise.
Newmont’s address is 6363 South Fiddler’s Green Circle, Suite 800, Greenwood Village, CO, 80111. Maverix is listed on the TSX and NYSE and its address is 510 Burrard Street, Vancouver, British Columbia, Canada, V6C 3A8. A copy of the early warning report filed by Newmont in connection with the Transaction is or will be available on Maverix’s SEDAR profile.
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