SOURCE: Maverix Metals Inc.

Maverix Metals Inc.

June 28, 2017 09:00 ET

Maverix Metals Arranges Financing With CEF Holdings Limited

VANCOUVER, BC--(Marketwired - June 28, 2017) - Maverix Metals Inc. (the "Company" or "Maverix") (TSX VENTURE: MMX) is pleased to announce that it has entered into a term sheet with CEF Holdings Limited ("CEF") pursuant to which Maverix and CEF have agreed to work towards documenting and completing the following transactions:

  • CEF providing Maverix with a US$20,000,000 senior secured term loan facility (the "Loan Facility"); and,
  • CEF subscribing for 5,000,000 common shares of Maverix ("Common Share") 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 (the "Private Placement" and, together with the Loan Facility, the "Financing").

CEF is owned 50% by CK Hutchison Holdings Limited, a multinational conglomerate founded by its Chairman Mr. Li Ka-shing, and 50% by the Canadian Imperial Bank of Commerce ("CIBC").

Daniel O'Flaherty, Chief Executive Officer of Maverix, commented: "We are pleased to welcome CEF as a partner and strategic investor of Maverix. We are committed to adding value through growing our royalty and streaming portfolio and, with the added support of CEF, our resources to execute on this strategy have been significantly enhanced."

Warren Gilman, Chief Executive Officer of CEF, commented: "CEF's objective is to support proven management teams in pursuit of growth which creates shareholder value. This financing and our emerging partnership will help provide the Maverix team with the additional financial resources to realize on their growth objectives."

Terms of the Loan Facility

Pursuant to the terms of the Loan Facility, CEF will advance US$10,000,000 to Maverix on closing of the Financing ("Closing Date"), with the remaining US$10,000,000 to be advanced at the discretion of Maverix at any time prior to the second anniversary of the Closing Date.

The Loan Facility will be due and payable by Maverix on the third anniversary of the Closing Date. The outstanding balance of the Loan Facility will bear a cash interest rate component of five percent (5%) per annum plus an equity component of three percent (3%) per annum, payable in Common Shares. At the discretion of Maverix, the Loan Facility may be paid in full without penalty at any time prior to the third anniversary of the Closing Date.

Pursuant to the terms of the Loan Facility, Maverix will pay to CEF an establishment fee on the Closing Date, such payment consisting of 900,000 Common Shares issuable from Maverix treasury. There is also a standby fee payable to CEF equal to two percent (2%) per annum on the unadvanced principal amount of the Loan Facility.

Terms of the Private Placement

The Private Placement by CEF is conditional upon, and expected to close concurrently with, closing of the Loan Facility.

There are no fees payable with respect to the Private Placement.

Closing of Financing and Use of Proceeds

The investment committee of CEF and the board of Maverix have approved the Financing. The parties expect that the Closing Date shall occur on or before July 31, 2017; however, the closing of the Financing remains subject to satisfactory completion of legal due diligence by CEF, negotiation and execution of definitive agreements, approval of the TSX Venture Exchange, regulatory approvals and other customary conditions for a financing of this nature.

The proceeds from the Financing are expected to be used by Maverix to acquire additional precious metals royalties and streams.

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.

About Maverix

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.

About CEF Holdings Limited

CEF Holdings Limited is owned 50% by CK Hutchison Holdings Limited and 50% by the CIBC. CK Hutchison Holdings Limited is the publicly-listed flagship company of the Cheung Kong Group of companies, the Hong Kong based multi-national conglomerate with a combined market capitalization of the Group in excess of US$100 billion. CIBC is a leading North American financial institution with operations around the world. CEF is an investor in significant resource assets on a global basis.

Cautionary note regarding forward-looking statements

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.

Maverix undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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