Northern Vertex Mining Corp. has completed the $28 million refinancing announced on December 6. It consists of a $20 million upfront payment from Maverix Metals to the company’s subsidiary Golden Vertex Mining Corp., which holds the Moss mine, based on a silver streaming agreement and a private placement of $8 million.
A portion of the proceeds was used to pay down debt and Northern Vertex said it intends to use the balance of the proceeds to fund the continued ramp up of mining operations at the Moss mine in northwest Arizona, the newest gold producer in the U.S.
Maverix made the upfront payment for the right to purchase, initially, 100% of the silver produced from the Moss mine. Once Maverix has purchased 3.5 million ounces (oz) of silver, it will have the right to purchase 50% of the life of mine silver produced from the Moss mine. Maverix will make ongoing cash payments to Golden Vertex equal to 20% of the average price of silver for the five consecutive trading days prior to delivery. The silver stream is effective from October 1, and it applies to all current and future phases of operations at the Moss mine.