Mako Mining (TSXV: MKO; US-OTC: MAKOF) said this week it intends to acquire the Moss gold mine in Arizona from EG Acquisition, a company established by Mako’s main shareholder, Connecticut-based Wexford Capital.
The asset is being acquired after former owner Elevation Gold Mining filed for creditor protection in August, citing debt and expenses.
The price is in the range of US$4.9 million up to US$6.4 million cash, contingent on resolving disputes surrounding a net smelter return royalty, Mako said.
If the royalties are vested away, Mako, through its then wholly-owned subsidiary EGA, has agreed to pay up to an additional US$1.5 million to the creditors. Mako said it expects the status of these royalties to be determined by June.
Shares in Mako Mining gained 7.3% this week in Toronto to $3.40 apiece Friday morning, valuing the company at $269 million. They’ve traded in a 52-week range of $1.96 to $3.74.
Producing asset
The proposed transaction will allow Mako to add a producing asset located in a top tier jurisdiction funded solely out of cash flow generated from the last quarter of Mako’s current mining operations, it said.
The Moss mine has been producing gold throughout the bankruptcy process through its beneficiation facilities. Mako said it plans to restart mining once it has had an opportunity to optimize the mine plan and debottleneck the crushing plant.
In March 2024, Mako announced its expansion into South America with the acquisition of Goldsource Mines (TSXV: GXS) and its flagship asset, the Eagle Mountain gold project in Guyana.
Mako also operates the high-grade San Albino gold mine in northern Nicaragua.
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