History
Maverix grew from a royalty buyer into a larger gold royalty company through purchases from Kinross, Newmont and Barrick, then agreed in 2022 to be acquired by Triple Flag.
2019: Buying Hope Bay and Kinross royalties
Maverix, a gold royalty and streaming company, began the record by expanding. In August 2019 it agreed to pay US$40 million cash for an extra 1.5% net smelter royalty (a share of a mine's revenue, less smelting costs) on TMAC Resources' Hope Bay gold mine in Nunavut. It already held 1.0%. The deal closed on August 16 with a royalty of 2.75% effective August 1, falling to 2.5% once registered against the property. It was paid for by drawing on the company's credit facility.
In September the facility was increased to US$120 million, with The Bank of Nova Scotia joining the lenders. In November Maverix declared its first-ever dividend, US$0.01 per share.
The biggest move came in December. Maverix agreed to buy a portfolio of royalties from Kinross Gold for US$25 million cash and 11.2 million new shares, which diluted existing holders. The deal closed on December 20. Afterwards there were 119.5 million shares outstanding, with Kinross holding about 9.4%, Newmont Goldcorp about 25.1% and Pan American Silver about 23.1%. Some royalties were subject to rights of first refusal, meaning other parties could claim them, so they were to be acquired in later closings.
2020: Selling down Beta Hunt, buying from Newmont
In June 2020 Maverix agreed to cut its royalty on Karora Resources' Beta Hunt mine from 7.5% to 4.75%, effective July 1. The June announcement described US$5 million cash plus 35.1 million Karora shares. When the deal closed in September, the filing instead stated US$18 million in cash and did not mention the shares or explain the change. Maverix planned to use the money to pay down its credit facility.
In September it agreed to buy 11 gold royalties from Newmont for US$75 million upfront, made up of 12 million new shares at a deemed US$5.00 and US$15 million cash, plus up to US$15 million in contingent payments. The deal closed on October 29. Newmont then held 42 million shares, about 30%. Camino Rojo (2.0%) and Cerro Blanco (1.0%) were among the key assets. Some royalties still depended on Mexican competition authority approval or rights of first refusal, and the filing did not say whether the contingent payments remained in place. Shares on issue ended 2020 at 140,488,309.
2021-2022: Record output and the Barrick portfolio
In June 2021 Maverix added six royalties from Pan American Silver for US$7 million cash and 491,071 shares. In September 2021 it raised its credit facility by US$40 million to US$160 million, maturing September 2025, with Bank of Montreal joining. Nothing was drawn at the time. It also filed a preliminary base shelf prospectus allowing up to US$500 million of securities offerings, though no offering was announced. Shares on issue ended 2021 at 146,720,355.
In February 2022 Maverix reported a record over 32,000 attributable gold equivalent ounces for 2021, above guidance of 31,000. It declared a dividend of US$0.0125 per share, up from US$0.01. It also noted Orla's first gold pour at Camino Rojo. In March 2022 it added a Nevada portfolio from Waterton, including Lewis, Dixie Creek and Railroad, for US$5 million cash.
In September 2022 Maverix agreed to buy 22 royalties from Barrick Gold for US$50 million upfront plus up to US$10 million in contingent payments. The headline asset was a 1.0% royalty on Skeena's Eskay Creek project. Before closing, Skeena bought back half of that royalty for C$17.5 million, leaving 0.5%, so the upfront cash fell to US$37.2 million. The deal closed on September 29, funded from cash and the credit facility, and took Maverix to 147 royalties and streams.
2022-2023: Sale to Triple Flag
In December 2022 a court granted an interim order for a plan of arrangement under which Triple Flag Precious Metals Corp. would acquire all Maverix shares. Shareholders approved it on January 12, 2023, with 98.378% of votes cast. Each share could receive US$3.92 in cash or 0.360 of a Triple Flag share, with cash capped at 15% of the total. Elections covered about 26% of shares for cash and about 74% for Triple Flag shares. Canadian competition clearance was received and the US waiting period expired.
On January 18, 2023, the Ontario Superior Court granted the final order. The arrangement was expected to take effect on or about January 19, after which Maverix expected to delist from the TSX and NYSE and stop being a reporting issuer in Canada. As of that date, closing had not been confirmed.
Written from the 17 story beats below (2019 to 18 Jan 2023), which come from the company's own announcements and filings.