Business
Mako Closes Silver Stream with Sailfish and Significantly Increases Working Capital by Repaying Principal and Extending Maturity of Remaining Debt
VANCOUVER, BC / ACCESSWIRE / May 25, 2023 / Mako Mining Corp. (TSX-V:MKO)(OTCQX:MAKOF) ("Mako" o...
About this update from Mako Mining Corp.
[{"type":"text","content":"Mako Closes Silver Stream with Sailfish and Significantly Increases Working Capital by Repaying Principal and Extending Maturity of Remaining DebtVANCOUVER, BC / ACCESSWIRE / May 25, 2023 / Mako Mining Corp. (TSX-V:MKO)(OTCQX:MAKOF) (\"Mako\" or the \"Company\") is pleased to announce that the Company has closed its previously announced 24-month silver stream (the \"Silver Stream\") with Sailfish Royalty Corp. (\"Sailfish\") for US$6.0 million in cash pursuant to a silver stream agreement dated May 24th, 2023 (the \"Silver Stream Agreement\"). For more details on the Silver Stream, please refer to the Company's news release dated March 2nd, 2023 and material change report dated March 8th, 2023.The proceeds from the Silver Stream will be used to repay the majority of the principal remaining on the Wexford Loan (as defined below) and for general working capital needs.Furthermore, the maturity date for the repayment of all remaining principal and accrued interest owing by Mako under the Wexford Loan has been extended for an additional year to March 31st, 2025, with no additional costs to shareholders, thereby providing the Company with a more flexible balance sheet and strengthening the Company's current working capital position.As Mako and Sailfish have a common control person being Wexford Capital LP, and a common director, being Akiba Leisman, the Silver Stream transaction is a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), and the extension of the maturity date under the Wexford Loan is also a related party transaction given Wexford LP is a control person of Mako. The process and completion of the transactions was reviewed and approved by the independent directors of Mako, with Mr. Leisman having declared his interests as a common director of Mako and Sailfish, and Mr. Paul Jacobi having declared his interests as a partner of Wexford Capital LP. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, each of the transactions, insofar as they involve the related parties, is expected to exceed 25% of the ...