pcJ News Briefs – Maverix Metals Inc. (TSX-V: MMX) has entered into a Credit Agreement dated July 31, 2017 with CEF (Capital Markets) Limited for a US $20,000,000 senior secured term loan facility. In addition, CEF (Capital Markets) will subscribe 5,000,000 common shares of Maverix on a non-brokered private placement basis at a price of CDN $1.35 per common share for gross proceeds to Maverix of CDN $6,750,000.
Pan American Silver will exercise its anti-dilution rights in connection with the CEF private placement, subscribing 2,317,000 common shares for gross proceeds to Maverix of CDN $3,127,950.
CEF (Capital Markets) Limited is owned by CEF Holdings Limited which is owned 50% by CK Hutchison Holdings Ltd and 50% by the Canadian Imperial Bank of Commerce.
MAVERIX METALS ANNOUNCES SIGNING OF US$20,000,000 CREDIT AGREEMENT AND EXERCISE OF PARTICIPATION RIGHTS BY PAN AMERICAN SILVER
July 31, 2017, Vancouver, British Columbia – Maverix Metals Inc. (the “Company” or “Maverix”) (TSX-V: MMX) is pleased to announce that it has entered into a Credit Agreement dated July 31, 2017 with CEF (Capital Markets) Limited (“CEF”) pursuant to which CEF agreed to:
• provide Maverix with a US$20,000,000 senior secured term loan facility (the “Loan Facility”); and,
• subscribe for 5,000,000 common shares of Maverix on a non-brokered private placement basis for gross proceeds to Maverix of C$6,750,000.
In addition, the Company is pleased to announce that pursuant to a shareholder agreement with Pan American Silver Corp. (“Pan American Silver”), Pan American Silver will exercise its anti-dilution rights in connection with the CEF private placement. As a result, Pan American Silver will subscribe for 2,317,000 common shares on a non-brokered private placement basis at a price of C$1.35 per common share for gross proceeds to Maverix of C$3,127,950.
Daniel O’Flaherty, Chief Executive Officer of Maverix, commented: “I would like to thank both CEF and Pan American Silver for their support and we fully intend to use the proceeds from these financings to continue to grow our precious metals royalty portfolio.”
Non-Brokered Private Placement
The Pan American Silver private placement, combined with the CEF private placement, will provide an aggregate of C$9,877,950 for the issuance of 7,317,000 common shares of the Company.
The parties expect the Loan Facility financing, as well as both private placements, to close during August. The closings of the financings remain subject to receipt of all necessary approvals and consents, including approval of the TSX Venture Exchange, and the satisfaction of customary closing conditions.
Upon closing of the financings, Pan American Silver will own 55,167,000 Common Shares which will represent approximately 36% of the total issued and outstanding common shares of the Company.
Maverix intends to use the proceeds from the debt and equity financings to acquire additional precious metals royalties and streams.
After completing the equity financings Maverix expects that its cash balances will have grown to in excess of C$19 million and when combined with the debt availability give the Company more than C$44 million to pursue growth opportunities.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maverix’s primary purpose is to acquire and hold predominantly precious metals streams and royalties, and in so doing provide significant leverage to gold and silver prices for its shareholders. Maverix’s mission is to increase underlying per share value by adding high-quality royalties and streams that offer robust returns to Maverix’s portfolio.
For further information, please contact:
Maverix Metals Inc.
Daniel O’Flaherty: (604) 343-6225
President and CEO
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