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Golden Reign Resources (TSXV: GRR; US-OTC: GRGNF) and Marlin Gold Mining (TSXV: MLN; US-OTC: MLNZF) have merged to form Mako Mining, which will begin trading on the TSX Venture Exchange under the symbol ‘MKO’ on November 14, 2018.
Mako will focus on Golden Reign’s San Albino gold deposit in northern Nicaragua and Marlin’s producing La Trinidad gold mine in Sinaloa, Mexico
Under the terms of the deal, Golden Reign acquired all of Marlin’s shares at a rate of 0.51 Golden Reign shares for each Marlin share.
Mako will focus on Golden Reign’s San Albino gold deposit in northern Nicaragua and Marlin’s producing La Trinidad gold mine in Sinaloa, Mexico. Prior to the merger, Marlin sold its Commonwealth silver-gold property in Cochise County, Arizona, to Wexford Capital LP, its largest shareholder.
Golden Reign also restructured its San Albino gold stream agreement with Sailfish Royalty (TSXV: FISH; US-OTC: SROYF), which Marlin spun out in 2017. The new agreement includes a 3% net smelter returns royalty (NSR) to an area of interest on San Albino, and a 2% NSR on the rest of San Albino, minus the El Jicaro concession.
According to a 2015 preliminary economic assessment, the San Albino deposit has a $128.6 million after-tax net present value at a 5% discount rate and a 47.9% after-tax internal rate of return. It requires a $13.9 million initial capital expenditure to produce more than 21,000 oz. gold equivalent per year for a 31 year mine life at a $466 all-in sustaining cost.
The project features both open pit and underground resources. In total, it contains 678,000 indicated tonnes grading 7.01 grams gold and 12.5 grams silver for 152,900 oz. gold and 271,800 oz. silver, or 156,100 oz. gold equivalent. It also contains 3.06 million inferred tonnes at 7.99 grams gold and 12.7 grams silver for 787,800 oz. gold and 1.25 million oz. silver, or 806,100 oz. gold equivalent.
