Kinross Gold sold its royalty portfolio to Maverix Metals for $74 million, which includes $25 million in cash and approximately 11.2 million Maverix common shares, representing a 9.4% 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 CEO of Kinross Gold.
Kinross’ royalty portfolio consists of 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.
As part of the transaction, Kinross will enter into an investor rights agreement with Maverix on closing, which 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.