Maverix Metals (MMX.TO, MMX) is working with Eclipse Gold Mining (EGLD.V) and Northern Vertex Resources (NEE.V) which are intending to merge by exercising warrants that are in the money, and subsequently selling them at a small profit in a pre-agreed deal. A good move as this provides an excellent liquidity event for Maverix Metals as it will exercise 19.5 million warrants at C$0.40 and subsequently sell the shares to Eclipse for C$0.50, generating a capital gain of C$1.95M which will have a positive impact on the company’s liquidity and balance sheet status.
Meanwile we have seen a bunch of insider purchases at Maverix Metals. In November, Warren Beil, the company’s General Counsel, purchased a total of 2,685 shares at an average price of C$6.62 for a total investment of almost C$17,800. And just last week, Brent Bonney, the company’s new VP Corporate Development purchased 2,000 shares at C$6.05 on the open market for a total investment of C$12,100. A nice vote of confidence from both gentlemen.
Disclosure: The author has a long position in Maverix Metals. Maverix is a sponsor of the website. Please read our disclaimer.
