Mako Mining (MKO.V) has entered into a non-binding letter of intent to acquire full ownership of the company that owns the Moss Gold mine. That mine was part of Elevation Gold Mining when it entered bankruptcy proceedings and Mako Mining will be able to scoop up the assets for a total price tag of US$4.9-6.4M depending on whether or not certain royalties will be extinguished. Prior to the bankruptcy process there were several royalties and a silver stream on the Moss mine and while the silver stream has already been eliminated, there are two royalties (a 1% NSR and a 3% NSR) that currently remain outstanding.
Those royalties are currently being disputed in bankruptcy court and if they are indeed removed from the property, Mako will arrange for the additional cash payment of US$1.5M to the creditors. The acquisition of the Moss mine will be completed by February 2025 but the final decision on the remaining royalties may take a bit longer.
It’s interesting to see Mako Mining entering the United States too further diversify its asset base, and it will be equally interesting to see if it picks up more land in the regional district.
Now the Moss mine has been taken out of bankruptcy, more attention may come towards this specific area of Arizona. As mentioned in a previous update, West Point Gold (WPG.V) (the new name of Gold79 Mines) has drilled a few holes on its own project nearby and we hope to see assay results in the next few weeks.
Disclosure: The author holds a long position in all stocks mentioned in this article. Please read the disclaimer.
