Business
Karora Resources Announces a Significant Reduction in Beta Hunt Royalty and Strategic Partnership with Maverix Metals
Karora Resources Announces a Significant Reduction in Beta Hunt Royalty and Strategic Part...
About this update from Mustang Minerals Limited
[{"type":"text","content":"\n\n\n\nKarora Resources Announces a Significant Reduction in Beta Hunt Royalty and Strategic Partnership with Maverix Metals\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 30, 2020\n\n\n\nTORONTO, June 30, 2020 /CNW/ - Karora Resources Inc. (TSX: KRR) (\"Karora\" or the \"Corporation\") and Maverix Metals Inc. (NYSE American & TSX: MMX) (\"Maverix\") are pleased to announce an agreement to reduce the gold royalty at Karora's Beta Hunt mine which, at closing, will create a strategic partnership aligning both parties in unlocking the significant value at Beta Hunt for their respective shareholders. Maverix has agreed with Karora to reduce the royalty on Beta Hunt gold production from 7.5% to 4.75% effective July 1, 2020. The reduced royalty burden on the Beta Hunt mine will allow both Karora and Maverix shareholders to benefit from a renewed focus on exploration, development and potential future production growth at Beta Hunt.   \n\n \n \n \n \n \n \n\n \nAs consideration for the reduction, Karora will pay US$5 million in cash and issue 35.1 million common shares at C$0.506 per share (the \"Share Consideration\") to Maverix. The shares are being priced based on the 20-day VWAP of the Karora common shares on the Toronto Stock Exchange to the close of trading on June 26, 2020. The US$5 million in cash will be paid in two equal installments of US$2.5 million, with the first such payment to be made on closing and the second payment to be made in January 2021.\nClosing of the transaction is subject to the receipt of necessary third party approvals (including of the TSX), execution of definitive documentation and other conditions which are customary for a transaction of this nature. The Karora common shares to be issued pursuant to this transaction will be subject to certain restrictions on trading during the period ending June 30, 2021, provided that Maverix will be subject to certain orderly disposition rights of Karora.\nPaul Andre Huet, Chairman & CEO of Karora, commented: \"Since I accepted the role of Karora CEO, we...