Mako Mining Corp (CVE: MKO, OTCMKTS: MAKOF, FRA: GQR0) has made a significant move by entering into a definitive agreement to acquire a shovel-ready gold and silver operation in Nevada. This development is particularly exciting as the construction and development of the operation—an open-pit, heap leach precious metals mine—has received full authorization from state authorities.
The Vancouver-based mining company is set to acquire the Mt. Hamilton operation through a structured agreement with Sailfish Royalty Corp (CVE: FISH, OTCMKTS: SROYF). In this deal, Sailfish is providing a substantial US$40 million to fund the purchase from Mt. Hamilton LLC, the site’s current owner. As part of the agreement, Sailfish will receive a 5-year gold stream and a 2% net smelter return royalty.
Specifically, Sailfish is entitled to purchase 341.7 ounces of gold per month at just 20% of the spot price set by the London Bullion Market Association throughout the 60-month duration of the agreement. It’s essential to note that while this acquisition looks promising, approval from shareholders and the TSX Venture Exchange is still pending.
Rich Mining Territory
Located in White Pine County along the eastern edge of the Battle Mountain trend, Mt. Hamilton is part of a region rich in a variety of minerals. This part of Nevada has been a notable source of gold, silver, copper, and critical minerals since the late 1800s and is also home to significant quantities of tungsten, zinc, manganese, molybdenum, and antimony. The geological prospects of the area render it an exciting backdrop for Mako Mining’s ambitions.
Mako will be collaborating with several key players in the area, including NevGold Corp (CVE: NAU, OTCMKTS: NAUFF), who is developing the Limousine Butte gold-antimony project, along with Nevada Sunrise Metals Corp (Nevada Sunrise Metals Corp) (CVE: NEV, OTC Pink: NVSGF), which operates the Griffon Gold Mine. Additionally, Mako will also be working alongside KGHM Polska Miedz SA (OTCMKTS: KGHPF, FRA: KGHA), owner of the Robinson operation.
Challenges and Strategic Planning
Despite its promising prospects, one of the challenges Mako faces is that the resource at Mt. Hamilton is located at the top of a mountain, offering limited space to set up processing infrastructure. CEO Akiba Leisman has indicated that the team has been brainstorming various strategies to tackle this issue. In an insightful interview last month, he mentioned considering the development of an ore shoot to utilize gravity for transporting ore material down the mountain effectively.
Mt. Hamilton boasts a substantial resource base, featuring a 600,000-ounce gold and silver deposit, along with multiple tungsten targets that could also be pivotal for Mako’s long-term strategies.
Strong Financial Position
Mako Mining is currently in a robust financial position, being completely debt-free. In their Q3 results, released on November 20, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$9.3 million—an incredible year-over-year increase from US$4.25 million in the same period last year. The rising price of gold has contributed to a revenue surge, surpassing US$10 million year-over-year to reach US$27.6 million in just three months.
Stock performance has also been favorable for Mako; shares have surged more than 130% year-to-date and are currently trading at C$7.34. With US$66 million in cash reserves, no debt, and steady cash flow from two operating assets, the company is optimistic about fully constructing the Mt. Hamilton operation by 2026. The goal is to initiate the first gold pour in the second half of next year, marking a significant milestone in their operational timeline.
Read more: NevGold surges after closing C$10M financing deal
Read more: NevGold edges closer to gold-antimony resource with latest Limousine Butte results
NevGold is a sponsor of Mugglehead news coverage.
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