Newmont to Increase its Ownership in Maverix
September 21, 2020, Vancouver, British Columbia – Maverix Metals Inc. (the “Company” or “Maverix”) (NYSE American: MMX, TSX: MMX) is pleased to announce that it has entered into a binding purchase and sale agreement to acquire a portfolio of 11 gold royalties (the “Royalty Portfolio”) from Newmont Corporation (“Newmont”) for upfront consideration of $75 million and contingent payments of up to $15 million (the “Transaction”).
All dollar figures are in U.S. dollars unless otherwise noted.
Transaction Highlights
? Addition of High Quality Gold Royalties Based in the Americas: The Royalty Portfolio consists of gold assets located in Mexico, USA, Canada and Guatemala, ranging from in construction to exploration stage;
? Growth Pipeline Enhanced with Near Term Cash Flow and Accretive to Net Asset Value per Share: Production at the Camino Rojo project, located in Zacatecas, Mexico, is expected to commence in 2021 and early works activities are expected to commence at the Cerro Blanco project, located in Jutiapa, Guatemala, by the first quarter of next year;
? Focused Counterparties Well Positioned to Advance Projects: The operations underlying the Royalty Portfolio include flagship assets for each of Orla Mining Ltd., Bluestone Resources Inc., Corvus Gold Inc., and KORE Mining Ltd.; and
? Newmont Relationship Strengthened: Newmont to increase its ownership in Maverix, re-affirming its endorsement of the Maverix investment by taking additional equity.
Dan O’Flaherty, CEO of Maverix, commented, "This transaction marks another important milestone in our continued growth at Maverix. The acquisition of these high quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets. We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets."
Royalty Portfolio
Asset Operator Location Stage Royalty
Camino Rojo Orla Mining Ltd. Zacatecas, Mexico Construction 2.0% NSR
Cerro Blanco Bluestone Resources Inc. Jutiapa, Guatemala Development 1.0% NSR
Mother Lode Corvus Gold Inc. Nevada, USA Development 1.0% – 2.0% NSR
Imperial KORE Mining Ltd. California, USA Development 1.0% NSR
Ana Paula Argonaut Gold Inc. Guerrero, Mexico Development 2.0% NSR
Trenton Canyon SSR Mining Inc. Nevada, USA Exploration 0.5% NSR
Buffalo Valley SSR Mining Inc. Nevada, USA Exploration 0.5% NSR
Cristina Criscora, S.A. de C.V. Chihuahua, Mexico Exploration 2.0% NSR
Yecora Criscora, S.A. de C.V. Sonora, Mexico Exploration 1.0% NSR
Algoma-Talisman Red Pine Exploration Inc. Ontario, Canada Exploration 2.0% NSR
Sprogge Seabridge Gold Inc. Yukon, Canada Exploration 0.63% NSR

Key Assets
Camino Rojo Royalty
A 2.0% net smelter return (“NSR”) royalty on the Camino Rojo project, located in Zacatecas, Mexico, and operated by Orla Mining (“Orla”). The royalty applies to oxide and transitional ore only.
The Camino Rojo land package consists of seven mineral concessions covering approximately 206,000 hectares and is located approximately 50 kilometres southeast of Newmont’s Peñasquito mine. The project currently has proven and probable reserves of approximately 44 million tonnes at 0.73 grams per tonne (“g/t”) gold and 14.2 g/t silver containing approximately 1.0 million ounces of gold and 20.1 million ounces of silver. A feasibility study was completed in 2019 that outlined an 18,000 tonne per day open-pit heap leach operation that would produce an average of 97,000 ounces of gold and 511,000 ounces of silver per year over an initial 6.8 year mine life. Orla is currently revising the feasibility study to incorporate the layback agreement with Fresnillo Plc announced in March of this year which is expected to increase the amount of recovered gold and mine life of the project. Orla has pre-ordered and committed to over $50 million for long-lead time items and expects to begin production in 2021. (1)
The Camino Rojo royalty is subject to a right of first refusal and any proceeds from the exercise of this right of first refusal will be paid to Maverix.
For more information on Camino Rojo, please visit www.orlamining.com.
Cerro Blanco Royalty
A 1.0% NSR royalty on the Cerro Blanco project, located in Jutiapa, Guatemala, and operated by Bluestone Resources (“Bluestone”), a member of the Lundin Group.
Cerro Blanco is a high grade gold and silver project with proven and probable reserves of 3.4 million tonnes at 8.5 g/t gold and 32.2 g/t silver containing 940,000 ounces of gold and 3.6 million ounces of silver. Recent step out and infill drilling has demonstrated strong potential for additional reserve and resource growth and Bluestone expects to update its reserves and resources in the first quarter of 2021. A feasibility study completed in 2019 outlined a high grade underground operation with annual production of 113,000 ounces of gold per year at an all-in sustaining cost of $579 per ounce over an initial eight year mine life. Optimization, engineering and design work is currently underway and Bluestone expects to arrange its project financing and initiate early works activities by the first quarter of next year. (2)
For more information on Cerro Blanco, please visit www.bluestoneresources.com