Business
Sailfish Closes Silver Stream with Mako Mining; Announces Closing of Private Placement of Convertible Debentures
Tortola, British Virgin Islands--(Newsfile Corp. - May 25, 2023) - Sailfish Royalty Corp. (TSXV: ...
About this update from Sailfish Royalty Corp.
[{"type":"text","content":"Sailfish Closes Silver Stream with Mako Mining; Announces Closing of Private Placement of Convertible DebenturesTortola, British Virgin Islands--(Newsfile Corp. - May 25, 2023) - Sailfish Royalty Corp. (TSXV: FISH) (OTCQX: SROYF) (the \"Company\" or \"Sailfish\") is pleased to announce that the Company has closed its previously announced 24-month silver stream (the \"Silver Stream\") from Mako Mining Corp. (\"Mako\") for US$6 million in cash pursuant to a silver stream agreement dated May 24, 2023 (the \"Silver Stream Agreement\"). The Silver Stream Agreement includes an option to purchase, after 12 of the 24-month term of the Silver Stream has passed, upon payment of US$1 million, all subsequent silver produced from the San Albino mine or from concessions currently owned by Mako and processed through Mako's San Albino processing facility. For more details on the Silver Stream, please refer to the Company's news release dated March 1, 2023.As Mako and Sailfish have a common control person, the Silver Stream was a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"); however, Sailfish was exempt from the formal valuation requirements of MI 61-101 by virtue of the exemption contained in section 5.5(a) and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(1)(a) of MI 61-101 as the fair market value of the consideration did not exceed 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Silver Stream, which the Company deems reasonable. Mako and Sailfish are also non-arm's length parties (as defined in TSXV Policy 1.1) given that they share a common director and control person.Convertible Debenture Private PlacementThe Company is also pleased to announce that it has closed the previously announced non-brokered private placement (the \"Offering\") of unsecured convertible debentures (each a \"Convertible Debenture\") at a price of US$1,000 per Convertible Debenture for gross proceeds of US$4.1 million. The Offering was upsized from US$4.0 million to US$4.1 million. Each Convertible Debenture bears interest at 10% per annum, from the date of issuance, payable semi-annually in arrear...