Maverix Metals Acquires Silver Stream On El Mochito Mine

VANCOUVER - Maverix Metals Inc. has entered into a life of mine purchase and sale agreement for silver produced from the El Mochito Mine, owned and operated by Ascendant Resources Inc. Maverix will make an advance payment for the right to purchase 22.5% of the silver produced from El Mochito (Silver Stream), and subject to certain conditions, further payment for an additional 17.5% of the silver produced (Option Stream). Maverix will pay 25% of the silver price at the time of delivery, for each silver ounce delivered.

"We are very pleased to partner with the team at Ascendant and we look forward to participating with them in the long-term potential of El Mochito," commented Dan O'Flaherty, CEO of Maverix. "This transaction is consistent with our stated strategy of acquiring long life precious metal streams that are immediately accretive to both our cash flow and net asset value."

The El Mochito Mine is located on an 10,000-hectare land package near the town of Las Vegas in north-western Honduras. It is 100% owned and operated by Ascendant, who have reinvigorated the mine and made excellent progress towards increasing production and stabilizing costs since acquiring the mine in December 2016.

El Mochito is currently a 2,300 tonnes per day, underground, zinc-lead-silver operation. The expansion and optimization PEA that was completed in October 2018 outlined a 10-year operation with increased production capacity of 2,800 tonnes per day (approximately 1 million tonnes per annum) which is expected to produce an average of nearly 600,000 ounces of silver per year. 

Ascendant's production guidance for 2019 is between 850,000 and 1,200,000 ounces of contained silver in concentrate from El Mochito. 

The company’s address is 575 – 510 Burrard Street, Vancouver, BC V6C 3A8, (604) 343-6225, www.maverixmetals.com.