Mr. Paul Rollinson of Kinross reports
KINROSS ANNOUNCES SALE OF ROYALTY PORTFOLIO TO MAVERIX METALS FOR TOTAL CONSIDERATION OF $74 MILLION
Kinross Gold Corp. has entered into an agreement to sell its royalty portfolio to Maverix Metals Inc. for total consideration of $74-million (U.S.), which includes $25-million (U.S.) in cash and approximately 11.2 million Maverix common shares, representing a 9.4-per-cent ownership interest in Maverix.
"This agreement realizes the value of our royalty portfolio today while also providing upside exposure through a meaningful equity position in Maverix, a company with a proven track record of growth," said J. Paul Rollinson, president and chief executive officer of Kinross Gold.
As part of the transaction, Kinross will enter into an investor rights agreement with Maverix on closing, which among other customary terms and conditions, will provide Kinross with pre-emptive rights to participate in any future equity financings to maintain its ownership position. The transaction is targeted to close on or before year-end 2019.
Kinross's royalty portfolio comprises 25 precious metals royalties, including interests in Integra Resources' DeLamar project in Idaho, Polymetal's Omolon Hub operations in Russia, Barrick Gold and Newmont Goldcorp's Cerro Casale project in Chile, Premier Gold Mines' McCoy Cove project in Nevada, Agnico Eagle's Hammond Reef project in Ontario, and a number of early-stage development and exploration projects.
Paradigm Capital acted as Kinross's financial adviser in connection with the transaction.
About Kinross Gold Corp.
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana.
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