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Sailfish Signs a Binding LOI with Mako Mining for a Silver Stream Designed to Enhance the Sustainability of Its Dividend and Increase Its Silver Exposure; Announces Private Placement of Convertible Debentures; and Appointment of New Director
Tortola, British Virgin Islands--(Newsfile Corp. - March 1, 2023) - Sailfish Royalty Corp. (TSXV:...
About this update from Sailfish Royalty Corp.
[{"type":"text","content":"Sailfish Signs a Binding LOI with Mako Mining for a Silver Stream Designed to Enhance the Sustainability of Its Dividend and Increase Its Silver Exposure; Announces Private Placement of Convertible Debentures; and Appointment of New DirectorTortola, British Virgin Islands--(Newsfile Corp. - March 1, 2023) - Sailfish Royalty Corp. (TSXV: FISH) (OTCQX: SROYF) (the \"Company\" or \"Sailfish\") is pleased to announce that it has signed a binding letter of intent (\"LOI\") with Mako Mining Corp. (\"Mako\") in respect of acquiring a 24-month silver stream (the \"Silver Stream\") for US$6 million in cash and an option to purchase subsequent silver produced from the San Albino mine or from concessions currently owned by Mako and processed through Mako's San Albino processing facility until production is no longer economically viable at the mutual agreement of Sailfish and Mako. Such option is exercisable after 12 of the 24 month term of the Silver Stream has passed for an additional US$1 million. As part of this transaction, Sailfish is announcing a US$4,000,000 convertible debenture financing (the \"Offering\") (see terms below). The net proceeds received by the Company from the Offering will be used to finance a portion of the US$6 million purchase price of the Silver Stream and the remaining portion will be paid with working capital.The material terms of the Silver Stream are as follows:Mako is expected to deliver 13,500 ounces of silver from its concessions, or alternatively gold equivalent or silver credits to the Company at the end of each month beginning on the last day of the first full month immediately following the closing date in respect of the Silver Stream transaction.The parties shall use good faith efforts to enter into a definitive agreement within 120 days from the effective date of the LOI.If the LOI is terminated within 120 days from its effective date as a result of a breach by either party of a material term of the LOI, the non-breaching party shall be entitled to receive a break fee of US$150,000 from the breaching party. Closing of the Company's acquisition of the Silver Stream is subject to the fulfillment of certain customary conditions including, but not limited to:The Company's completion of the Offering;Satisfactory review of the technical information in respect of the San Albino property by Watts Griffis &a...